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Sydney's rental market is one of the most talked-about in Australia, and for good reason: yields vary a lot depending on where you buy and what you buy.
In this article, we break down rental yields across ten Sydney neighborhoods so you can see clearly where the numbers work and where they don't.
And if you're planning to buy a property in Sydney, you may want to download our real estate database about Sydney.
A quick summary table
| Metric | Value |
|---|---|
| Sydney neighborhood with best rental yield | Haymarket (up to 6.5% gross for a 1-bed unit) |
| Sydney neighborhood with worst rental yield | Burwood (as low as 2.0% gross for a 3-bed house) |
| Average gross yield across Sydney | ~4.3% |
| Average net yield across Sydney | ~3.3% |
| Median purchase price in the dataset | A$1,050,000 |
| Average monthly rent across Sydney properties | A$4,115 |
| Average occupancy rate | ~95% |
| Fastest leasing Sydney market | Zetland (1-bed unit, ~11 days average) |
| Slowest leasing Sydney market | Bondi Beach (2-bed semi, ~28 days average) |
| Highest occupancy Sydney market | Zetland and Parramatta (97% for 1-bed units) |
| Best value high-yield Sydney segment | 1-bed units in Haymarket, Liverpool, Zetland, and Parramatta |
| Sydney yield dispersion (top to bottom) | From 6.5% gross (Haymarket 1-bed) down to 2.0% gross (Burwood house) |
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Sydney neighborhoods and property types in 2026 ranked by rental yield
This table ranks the top neighborhoods and property types in the Sydney residential market by gross rental yield.
For each neighborhood and property type, the table includes average purchase price, average monthly rent, gross rental yield, net rental yield, annual fees, average occupancy, average time to rent, main rental demand, main risk, and investment profile.
By the way, you'll find much more detailed data in our real estate database about Sydney.
| # | Neighborhood | Property type | Gross rental yield | Net rental yield | Average purchase price | Average monthly rent | Ownership annual fees | Average occupancy | Average time to rent | Main rental demand | Main risk | Rental Investment Profile |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Haymarket | 1-bed unit | 6.5% | 5.3% | A$715,000 | A$3,900 | A$7,000 | 96% | 12 days | Students and CBD workers | High strata and supply swings | Top Pick |
| 2 | Haymarket | 2-bed unit | 5.2% | 4.2% | A$1,198,000 | A$5,200 | A$9,500 | 95% | 15 days | Two professional flatmates | New-tower competition risk | Strong Potential |
| 3 | Haymarket | 3-bed unit | 4.5% | 3.6% | A$1,900,000 | A$7,150 | A$12,000 | 93% | 21 days | Affluent sharers near universities | High entry price volatility | Good Potential |
| 4 | Liverpool | 1-bed unit | 6.3% | 4.9% | A$415,000 | A$2,165 | A$4,700 | 96% | 14 days | Hospital workers and commuters | Tenant income sensitivity | Top Pick |
| 5 | Liverpool | 2-bed unit | 5.6% | 4.2% | A$510,000 | A$2,380 | A$5,600 | 95% | 18 days | Young families and couples | Building quality variance | Strong Potential |
| 6 | Liverpool | 3-bed house | 3.1% | 2.2% | A$1,102,500 | A$2,815 | A$7,600 | 94% | 24 days | Larger local family households | Maintenance-heavy detached stock | Good Potential |
| 7 | Zetland | 1-bed unit | 5.9% | 4.8% | A$708,500 | A$3,470 | A$6,500 | 97% | 11 days | Young professionals in Green Square | Heavy new-apartment competition | Top Pick |
| 8 | Zetland | 2-bed unit | 5.5% | 4.4% | A$1,050,000 | A$4,770 | A$8,500 | 96% | 14 days | Couples needing city access | Strata cost creep | Strong Potential |
| 9 | Zetland | 3-bed unit | 5.0% | 4.1% | A$1,500,000 | A$6,280 | A$10,500 | 95% | 19 days | Families wanting apartment amenity | Larger-unit resale depth risk | Good Potential |
| 10 | Parramatta | 1-bed unit | 5.9% | 4.7% | A$494,000 | A$2,430 | A$5,200 | 97% | 12 days | CBD workers and students | Investor-stock oversupply pockets | Top Pick |
| 11 | Parramatta | 2-bed unit | 5.5% | 4.3% | A$620,000 | A$2,860 | A$6,200 | 96% | 15 days | Couples and hospital staff | Tower-by-tower quality dispersion | Strong Potential |
| 12 | Parramatta | 3-bed unit | 5.1% | 3.9% | A$827,500 | A$3,510 | A$7,400 | 95% | 20 days | Families near the CBD | Slower exit liquidity | Strong Potential |
| 13 | Surry Hills | 1-bed unit | 5.3% | 4.2% | A$790,000 | A$3,470 | A$6,500 | 96% | 13 days | City professionals and creatives | Older strata capex surprises | Strong Potential |
| 14 | Surry Hills | 2-bed unit | 3.9% | 3.1% | A$1,475,000 | A$4,770 | A$9,000 | 95% | 18 days | Professional couples near the CBD | High buy-in compresses yield | Moderate Appeal |
| 15 | Surry Hills | 2-bed terrace | 3.3% | 2.7% | A$1,950,000 | A$5,415 | A$8,200 | 94% | 22 days | Affluent couples wanting character homes | Heritage maintenance risk | Moderate Appeal |
| 16 | Burwood | 1-bed unit | 5.0% | 4.0% | A$720,000 | A$2,990 | A$6,000 | 96% | 14 days | Students and rail commuters | High-density pipeline risk | Strong Potential |
| 17 | Burwood | 2-bed unit | 4.6% | 3.6% | A$916,900 | A$3,550 | A$7,300 | 95% | 17 days | Families wanting school access | Strata levies in newer complexes | Good Potential |
| 18 | Burwood | 3-bed house | 2.0% | 1.5% | A$2,455,000 | A$4,115 | A$8,500 | 94% | 27 days | Multigenerational local families | Weak yield versus entry cost | Limited Appeal |
| 19 | Bondi Junction | 1-bed unit | 4.6% | 3.7% | A$900,000 | A$3,470 | A$6,800 | 96% | 14 days | Professionals wanting beach-and-rail access | Premium pricing compresses yield | Good Potential |
| 20 | Bondi Junction | 2-bed unit | 3.4% | 2.7% | A$1,600,000 | A$4,550 | A$9,000 | 95% | 19 days | Couples upgrading from smaller units | Softer yield after strata | Moderate Appeal |
| 21 | Bondi Junction | 2-bed terrace | 3.1% | 2.6% | A$2,250,000 | A$5,850 | A$8,500 | 94% | 24 days | Affluent couples wanting walkability | High land value entry risk | Moderate Appeal |
| 22 | Newtown | 1-bed unit | 4.7% | 3.7% | A$750,000 | A$2,950 | A$6,000 | 96% | 15 days | Students and inner-west professionals | Older stock upkeep risk | Good Potential |
| 23 | Newtown | 2-bed terrace | 3.0% | 2.4% | A$1,650,000 | A$4,115 | A$7,600 | 95% | 21 days | Couples wanting lifestyle streets | Heritage and renovation costs | Moderate Appeal |
| 24 | Newtown | 3-bed terrace | 2.6% | 2.1% | A$2,187,500 | A$4,760 | A$8,400 | 94% | 27 days | Sharers and established families | Low cash yield at high entry | Moderate Appeal |
| 25 | Chatswood | 1-bed unit | 4.5% | 3.5% | A$810,000 | A$3,030 | A$6,500 | 96% | 15 days | Young professionals near offices | Premium pricing caps upside | Good Potential |
| 26 | Chatswood | 2-bed unit | 4.1% | 3.2% | A$1,150,000 | A$3,900 | A$8,200 | 95% | 18 days | School-focused family renters | Expensive strata in towers | Good Potential |
| 27 | Chatswood | 3-bed house | 2.3% | 1.8% | A$3,078,000 | A$5,850 | A$9,500 | 94% | 26 days | Affluent school-catchment families | Low income return on capital | Moderate Appeal |
| 28 | Bondi Beach | 1-bed unit | 4.0% | 3.2% | A$1,125,000 | A$3,790 | A$7,200 | 95% | 17 days | Beach professionals and relocators | Price-sensitive yield compression | Moderate Appeal |
| 29 | Bondi Beach | 2-bed unit | 3.8% | 3.0% | A$1,630,000 | A$5,200 | A$9,800 | 94% | 20 days | Affluent couples near the beach | Seasonal listing competition | Moderate Appeal |
| 30 | Bondi Beach | 2-bed semi | 2.8% | 2.3% | A$2,690,000 | A$6,280 | A$9,200 | 93% | 28 days | High-income beach lifestyle tenants | Very high entry cost | Limited Appeal |
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Key insights about rental yields in Sydney
Insights
- The spread between Sydney's best and worst gross yield in this dataset is 4.5 percentage points (6.5% in Haymarket versus 2.0% in Burwood). That gap is large enough to completely change whether rent covers your holding costs.
- A Sydney 1-bed unit in Liverpool at A$415,000 returns a gross yield of 6.3%, while a 3-bed house in Chatswood at A$3,078,000 returns just 2.3%. The cheaper property produces nearly three times as much income per dollar spent.
- Zetland and Parramatta both hit a 97% occupancy rate for 1-bed units. That is the highest in this entire Sydney dataset, meaning these apartments almost never sit empty.
- Haymarket's 1-bed unit is the only row in this Sydney dataset to cross both the 6.5% gross yield threshold and a net yield above 5%, making it a rare double for cashflow-focused buyers.
- In Sydney, paying more for prestige reliably reduces your income return. Every A$1 million you add to your purchase price in this market tends to push gross yield down by roughly 1 to 1.5 percentage points.
- Sydney houses in this dataset consistently underperform apartments for rental yield. The four house rows average a gross yield of just 2.4%, compared to around 4.8% for the apartment rows.
- A Sydney 1-bed unit in Surry Hills yields 5.3% gross, while a 2-bed terrace in the same suburb yields only 3.3%. That is a 2-point difference inside one neighborhood just by changing what you buy.
- Parramatta is the only Sydney market in this dataset where you can buy a 3-bed unit, get a gross yield above 5%, and still pay under A$830,000. That combination is hard to find anywhere else in the city.
- Sydney strata fees are a meaningful drag on net yield. In Haymarket, annual ownership fees on a 3-bed unit reach A$12,000, which pulls net yield down by almost a full percentage point compared to gross.
- Time to rent in Sydney closely tracks purchase price. Properties under A$750,000 average about 12 to 14 days to lease, while properties above A$2,000,000 average 24 to 28 days. Cheaper apartments find tenants faster almost every time.
- Bondi Beach achieves Sydney's highest absolute monthly rents in this dataset (up to A$6,280 for a 2-bed semi), yet still produces one of the lowest net yields at 2.3%. High rent does not equal strong return when the entry price is very high.
- Burwood's 3-bed house is the weakest row in the entire Sydney dataset, with a gross yield of 2.0% and a net yield of just 1.5%. Buying that property at today's prices means rent covers only a small fraction of your ownership costs each year.
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About our methodology
We also believe it is important to show our reasoning. It is one of the ways we make our work solid, transparent, and rigorous, just as you will see in our real estate database about Sydney.
First, please note that this data is updated regularly, so what you see here reflects the current values as of today.
In order to get reliable data, we applied a strict source filter. We only used authoritative, verifiable sources, not random listings or unsupported figures. More on that point below.
For each Sydney neighborhood and property type, we aggregated the freshest purchase price and monthly rent data available. When possible, we cross-checked multiple sources to confirm the same range.
This allowed us to estimate rental yield before costs. That is the gross yield, based on annual rent versus purchase price.
We then estimated rental yield after costs. That is the net yield, after recurring ownership and operating expenses.
These expenses vary quite a bit across Sydney. That is why two suburbs with similar rents can still produce very different net returns.
For example, newer apartment towers in Haymarket and Zetland often carry high strata levies, while older terrace homes in Newtown and Surry Hills may have lower strata costs but higher maintenance and repair bills. In high-turnover markets near universities or hospitals, vacancy and tenant-related costs can also be a factor.
We also estimated ownership annual fees by combining the main recurring costs linked to each asset type. This includes items such as council rates, strata or body corporate fees where relevant, landlord insurance, and a maintenance allowance adjusted for property age and condition.
These estimates were not applied as one flat number across Sydney. They were adjusted by neighborhood and property type to better reflect local ownership conditions in each part of the city.
This table should therefore be read as a structured market estimate, not as an exact guarantee of future performance. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate database about Sydney.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our real estate database about Sydney, we rely on verifiable sources and a transparent methodology.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's reliable | How we used it |
|---|---|---|
| ABS Greater Sydney Census QuickStats | Australia's national statistics office, the standard reference for local demographic and dwelling data. | We used it to understand dwelling mix, renter share, and neighborhood structure across Greater Sydney. It also helped us decide which property types are most common and relevant in each area. |
| NSW Communities and Justice Rent and Sales Report | The NSW Government's own housing data tool, covering suburb-level rents and sales across the state. | We used it as our main official baseline for suburb-level rent and sale data in Sydney. It anchored our estimates to the latest official NSW series available, which covered December 2025 for rents and September 2025 for sales. |
| NSW Sales Tables Workbook (Issue 151) | A government-issued data file, not a marketing summary, covering verified suburb sale-price figures. | We used it to cross-check suburb sale-price patterns against portal medians. It helped us avoid leaning too heavily on any single private source. |
| Cotality Home Value Index March 2026 | Cotality, formerly CoreLogic, is one of Australia's most established and widely cited housing data providers. | We used it to anchor the broader Sydney price backdrop for March 2026. It also helped us avoid over-extrapolating suburb medians in a market that has been flattening at the city level. |
| PropTrack Home Price Index February 2026 | PropTrack is a major Australian property data provider backed by one of the country's largest listings platforms. | We used it to cross-check the near-term price direction in Sydney heading into early 2026. It kept our March 2026 assumptions consistent with recent market momentum. |
| SQM Research Vacancy Rates | SQM is a long-established Australian property research firm with a transparent and well-documented vacancy methodology. | We used it to tune our occupancy assumptions and time-to-rent estimates for each Sydney suburb. It reflected the tight leasing conditions that have persisted across the city into early 2026. |
| SQM Research Weekly Rents Tool | SQM is widely cited in Australia for tracking asking rents and vacancy at the suburb level. | We used it to cross-check the direction and relative tiers of asking rents across Sydney neighborhoods. It also helped keep our monthly rent estimates consistent with current market signals. |
| Domain Rental Report | Domain is one of Australia's two major property portals and publishes a regular, widely referenced rental series. | We used it to cross-check Sydney rent direction and affordability pressure across the city. It also validated that demand for smaller apartments remained strong among renters in 2026. |
| realestate.com.au Suburb Profiles | Australia's largest property portal, with detailed suburb-level sale and rent data updated in near real time. | We used it heavily for current suburb medians by bedroom mix and for current asking-rent signals across Sydney. It also helped us identify the property types most commonly searched in each neighborhood. |
| Domain Suburb Profiles | Domain's suburb pages are an established source of neighborhood-level sale, rent, and market context across Australia. | We used them to confirm the practical relevance of each Sydney neighborhood and the depth of its active rental and sales market. They also served as a secondary cross-check against medians from other portal sources. |
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