Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
If you're a foreigner thinking about buying an apartment in Sydney for rental income, the first question you probably have is: what kind of return can I actually expect?
In this article, we break down current rental yields, typical rents by apartment size, the best neighborhoods for demand and yield, and all the costs that will eat into your profits.
We constantly update this blog post with fresh data to make sure you're getting the most accurate picture of Sydney's rental market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sydney.
What rental yields can I realistically get from an apartment in Sydney?
What's the average gross rental yield for apartments in Sydney as of 2026?
As of early 2026, the average gross rental yield for apartments in Sydney sits at around 4.2%, which means for every A$100,000 you invest, you can expect roughly A$4,200 in annual rent before any costs.
That said, most Sydney apartment investments fall within a realistic range of 3.7% to 4.8% gross yield, depending on where and what you buy.
The biggest factor that swings your yield in Sydney is whether you buy in a "prestige" location like the Eastern Suburbs or Northern Beaches, where property prices are inflated by lifestyle premiums that rents simply don't match, versus more working-class transit corridors like Auburn or Lakemba where prices are lower relative to what tenants will pay.
Compared to other major Australian cities, Sydney's gross yields are on the lower end because property prices here are the highest in the country, while Melbourne typically offers similar yields around 4% and cities like Brisbane or Perth can reach 5% or more.
What's the average net rental yield for apartments in Sydney as of 2026?
As of early 2026, the average net rental yield for apartments in Sydney lands between 2.4% and 3.0%, which is what remains after you pay all the usual landlord expenses but before any mortgage costs.
Most Sydney apartment investors can realistically expect net yields in the range of 2.2% to 3.2%, with the variation depending mostly on your strata levies and how efficiently you manage the property.
The single biggest expense that shrinks your gross yield in Sydney is strata levies, which can easily run A$4,000 to A$8,000 per year (around US$2,500 to US$5,100 or EUR 2,400 to EUR 4,700) for a typical mid-rise apartment with a lift, and much higher if the building has a pool, concierge, or ongoing defect remediation work that Sydney apartments are notorious for.
By the way, you will find much more detailed data in our property pack covering the real estate market in Sydney.
What's the typical rent-to-price ratio for apartments in Sydney in 2026?
As of early 2026, the typical rent-to-price ratio for Sydney apartments is around 0.35% per month, meaning if you buy a A$900,000 apartment, you can expect to charge roughly A$3,150 per month in rent.
Most Sydney apartment transactions fall within a rent-to-price range of 0.30% to 0.40% monthly, with cheaper apartments in outer suburbs often hitting the higher end of that range.
The apartment categories with the highest rent-to-price ratios in Sydney tend to be compact one-bedrooms and studios in western transit hubs like Parramatta, Auburn, and Granville, where purchase prices stay relatively modest but rents are supported by strong tenant demand from workers commuting to the CBD.
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How much rent can I charge for an apartment in Sydney?
What's the typical tenant budget range for apartments in Sydney right now?
In Sydney in early 2026, the typical tenant budget for renting an apartment ranges from around A$550 to A$900 per week, which works out to roughly US$1,400 to US$2,300 or EUR 1,300 to EUR 2,100 per month.
For tenants targeting mid-range apartments with good transport links and modern finishes, expect budgets of A$700 to A$850 per week, or about US$1,800 to US$2,200 (EUR 1,650 to EUR 2,000) per month.
Tenants seeking high-end or luxury apartments in prestige locations like Barangaroo, Double Bay, or waterfront Pyrmont typically budget A$1,000 to A$1,500 per week or more, which translates to roughly US$2,600 to US$3,900 (EUR 2,400 to EUR 3,500) per month.
We have a blog article where we update the latest data about rents in Sydney here.
What's the average monthly rent for a 1-bed apartment in Sydney as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Sydney is around A$2,820 per month, which equals roughly US$1,800 or EUR 1,660.
At the entry level, a decent 1-bed apartment in Sydney rents for around A$2,200 to A$2,500 per month (US$1,400 to US$1,600 or EUR 1,300 to EUR 1,480), and this typically gets you an older building in suburbs like Ashfield, Rockdale, or Parramatta without premium finishes.
A mid-range 1-bed apartment in Sydney commands around A$2,600 to A$3,000 per month (US$1,660 to US$1,920 or EUR 1,530 to EUR 1,770), which usually means a modern building with air conditioning and a balcony in areas like Zetland, Marrickville, or Chatswood.
At the high end, a luxury 1-bed apartment in Sydney fetches A$3,500 to A$4,500 per month (US$2,240 to US$2,880 or EUR 2,060 to EUR 2,660), and you're looking at prestige towers in the CBD fringe, Barangaroo, or waterfront locations with concierge and harbour views.
What's the average monthly rent for a 2-bed apartment in Sydney as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Sydney is around A$3,245 per month, which equals roughly US$2,080 or EUR 1,910.
At the entry level, a decent 2-bed apartment in Sydney rents for around A$2,600 to A$2,900 per month (US$1,660 to US$1,860 or EUR 1,530 to EUR 1,710), typically an older walk-up or basic high-rise in suburbs like Bankstown, Liverpool, or outer Parramatta.
A mid-range 2-bed apartment in Sydney commands around A$3,000 to A$3,600 per month (US$1,920 to US$2,300 or EUR 1,770 to EUR 2,120), which gets you a modern building with parking and good amenities in suburbs like Wolli Creek, St Leonards, or Newtown.
At the high end, a luxury 2-bed apartment in Sydney fetches A$4,000 to A$6,000 per month (US$2,560 to US$3,840 or EUR 2,360 to EUR 3,540), and you're looking at premium towers in Darling Harbour, Potts Point, or beachside Bondi with top-tier finishes and views.
What's the average monthly rent for a 3-bed apartment in Sydney as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Sydney is around A$4,120 per month, which equals roughly US$2,640 or EUR 2,430.
At the entry level, a decent 3-bed apartment in Sydney rents for around A$3,200 to A$3,700 per month (US$2,050 to US$2,370 or EUR 1,890 to EUR 2,180), typically an older building in suburbs like Hurstville, Strathfield, or outer Canterbury.
A mid-range 3-bed apartment in Sydney commands around A$3,800 to A$4,500 per month (US$2,430 to US$2,880 or EUR 2,240 to EUR 2,660), which usually means a modern family-sized unit in areas like Epping, Randwick, or North Sydney with parking and good school access.
At the high end, a luxury 3-bed apartment in Sydney fetches A$5,500 to A$9,000 per month (US$3,520 to US$5,760 or EUR 3,250 to EUR 5,310), and you're looking at penthouse-style apartments in Circular Quay, Point Piper, or Mosman with harbour views and premium amenities.
How fast do well-priced apartments get rented in Sydney?
In Sydney in early 2026, a well-priced apartment in a desirable location typically gets rented within 1 to 3 weeks, and in the hottest inner-city pockets it can be under 10 days.
The typical vacancy rate for apartments in Sydney sits around 1.4%, which is very tight by historical standards and means landlords have strong negotiating power.
The main factors that make some Sydney apartments rent faster than others are proximity to train stations on the Metro or T1/T2 lines, whether the building allows pets (a growing tenant priority), and the building's reputation for defects or disputes, as Sydney has many apartment towers with well-publicized structural issues that savvy tenants now research before signing.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Sydney.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which apartment type gives the best yield in Sydney?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Sydney as of 2026?
As of early 2026, studios and compact 1-bed apartments typically offer the best gross rental yield in Sydney, followed by standard 1-beds, then 2-beds, with 3-beds generally delivering the lowest yields.
In terms of typical gross yield ranges, studios and compact 1-beds in Sydney can reach 4.5% to 5.0%, standard 1-beds sit around 4.2% to 4.6%, 2-beds typically hit 3.9% to 4.4%, and 3-beds often fall between 3.5% and 4.0%.
The main reason smaller apartments outperform in Sydney is that purchase prices jump significantly as you add bedrooms (driven by family-oriented owner-occupier demand and prestige premiums), but rents don't increase proportionally because most tenants are young professionals, students, or sharers who prioritize location over space.
Which features are best if you want a good yield for your apartment in Sydney?
In Sydney, the features that most positively impact rental yield are walkability to a train or Metro station (especially on the T1, T2, or new Metro lines), air conditioning (now expected by almost all tenants), a second genuine bedroom rather than a converted study, and pet-friendly strata by-laws which significantly expand your tenant pool in a city where around 60% of households have pets.
In Sydney, mid-floor apartments (levels 3 to 8) tend to rent fastest because they avoid the noise and security concerns of ground level while not commanding the price premium of high floors that rarely translates into proportionally higher rent.
Apartments with balconies or outdoor space in Sydney definitely rent faster and can command 5% to 10% higher rents, particularly since the pandemic shifted tenant priorities toward private outdoor areas, though tiny "Juliet balconies" add almost no rental value.
Building features like lifts, secure parking, and concierge can raise rents in Sydney, but the yield impact depends heavily on the strata levies they generate, so a building with a pool and gym might fetch A$50 more per week in rent but cost A$2,000 more annually in levies, often making it a net negative for yield-focused investors.
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Which neighborhoods give the best rental demand for apartments in Sydney?
Which neighborhoods have the highest rental demand for apartments in Sydney as of 2026?
As of early 2026, the Sydney neighborhoods with the highest rental demand for apartments include Surry Hills, Redfern, Zetland, Newtown, Marrickville, North Sydney, Chatswood, and Parramatta, all of which combine strong transport links with employment access.
The main demand driver in these Sydney neighborhoods is proximity to major job centers (CBD, North Sydney, Parramatta) combined with frequent rail or Metro connections, as Sydney tenants consistently prioritize cutting their commute time over almost any other factor given the city's notorious traffic congestion.
In these high-demand Sydney neighborhoods, vacancy rates typically sit below 1.5% and well-priced apartments often receive multiple applications within the first week of listing.
One emerging neighborhood gaining rental demand momentum in Sydney is Wolli Creek and the adjacent Arncliffe area, which benefits from airport proximity, the new Metro extension, and significantly lower rents than neighboring Mascot, making it attractive to young professionals priced out of inner-city suburbs.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Sydney.
Which neighborhoods have the highest yields for apartments in Sydney as of 2026?
As of early 2026, the Sydney neighborhoods with the highest rental yields for apartments include Auburn, Granville, Lakemba, Wiley Park, Bankstown, and parts of the Parramatta fringe, where purchase prices remain relatively affordable while rents stay solid.
In these top-yielding Sydney neighborhoods, gross rental yields typically range from 4.5% to 5.5%, compared to the citywide average of around 4.2%.
The main reason these Sydney neighborhoods offer higher yields is that they have large populations of migrant communities and essential workers who create steady rental demand, but owner-occupier and investor competition for purchases is lower than in "lifestyle" suburbs, keeping property prices from inflating beyond what rents can support.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Should I do long-term rental or short-term rental in Sydney?
Is short-term rental legal for apartments in Sydney as of 2026?
As of early 2026, short-term rental accommodation (like Airbnb) is legal for apartments in Sydney, but it comes with significant restrictions that you must understand before committing to this strategy.
The main legal restrictions for operating a short-term rental apartment in Sydney include a 180-day annual cap for non-hosted rentals (meaning when you're not present) in Greater Sydney, mandatory registration on the NSW STRA Register, fire safety compliance, and the requirement that your strata building's by-laws permit short-term letting.
For Airbnb-style rentals in Sydney, you must register your property on the NSW Short-Term Rental Accommodation Register, display your registration number on all listings, and meet specific safety requirements including working smoke alarms, and the 180-day cap is strictly enforced through platform data sharing with the NSW government.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Sydney.
What's the gross yield difference short-term vs long-term in Sydney in 2026?
As of early 2026, short-term rentals in Sydney can generate a gross yield of around 5.5% to 6.0% compared to approximately 4.2% for long-term rentals, representing a potential uplift of 1 to 2 percentage points before accounting for higher operating costs.
For Sydney apartments, typical gross yields range from 4.0% to 4.5% for long-term rentals versus 5.0% to 7.0% for short-term rentals, though the short-term figures assume strong occupancy and are capped by the 180-day non-hosted limit.
The main additional costs that reduce the net yield advantage of short-term rentals in Sydney include cleaning fees (A$80 to A$150 per turnover), platform commissions (3% to 15%), higher utility bills, furnishing and replacement costs, and often professional property management fees of 20% to 25% of revenue compared to 6% to 8% for long-term management.
To outperform a long-term rental in Sydney, a short-term rental typically needs to achieve at least 55% to 60% occupancy at average daily rates, which becomes very challenging when you're legally limited to 180 days and facing competition from over 28,000 other Sydney listings.
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What costs will eat into my net yield for an apartment in Sydney?
What are building service charges as a % of rent in Sydney as of 2026?
As of early 2026, typical building service charges (called strata levies in Sydney) run between 10% and 15% of annual rent for most apartments, which translates to roughly A$3,800 to A$5,700 per year (US$2,430 to US$3,650 or EUR 2,240 to EUR 3,360) on a median-priced unit.
The realistic range of strata levies in Sydney spans from around 8% to 25% of rent, with simple walk-up buildings at the low end and full-service towers with pools, gyms, and concierges at the high end.
In Sydney specifically, the services and features that justify higher-than-average strata levies include remediation work for building defects (a widespread issue in apartments built between 2000 and 2020), façade maintenance on harbor-facing buildings exposed to salt air, and lift replacements in aging towers, all of which can trigger special levies on top of regular quarterly payments.
What annual maintenance budget should I assume for an apartment in Sydney right now?
In Sydney in early 2026, apartment owners should budget around A$3,600 to A$7,200 per year (US$2,300 to US$4,600 or EUR 2,120 to EUR 4,250) for maintenance inside their lot, which represents roughly 0.4% to 0.8% of property value.
Depending on apartment age and building condition in Sydney, annual maintenance costs can range from A$2,000 per year (US$1,280 or EUR 1,180) for newer buildings under 10 years old to A$10,000 or more (US$6,400 or EUR 5,900) for older buildings with aging appliances and fitouts.
The most common maintenance expenses Sydney apartment owners face annually include air conditioning servicing and repairs (critical in Sydney's humid summers), hot water system maintenance, internal painting touch-ups due to tenant turnover, and replacing worn carpet or vinyl flooring, though your strata levies separately cover all common area maintenance like hallways, lifts, and building exteriors.
What property taxes should I expect for an apartment in Sydney as of 2026?
As of early 2026, the main property taxes for apartments in Sydney include council rates of around A$1,000 to A$1,800 per year (US$640 to US$1,150 or EUR 590 to EUR 1,060) and potentially land tax if your total taxable land holdings exceed the threshold.
Depending on apartment value and location in Sydney, council rates can range from A$800 per year in outer suburbs to A$2,500 or more in premium inner-city council areas, while land tax (if applicable) can add thousands more based on your apportioned land value.
Property taxes in Sydney are calculated based on the unimproved land value of your property (determined by the NSW Valuer General), not the purchase price, so an apartment's land tax is based on its share of the building's total land value, which is why even apartments have land tax exposure.
There are no general property tax exemptions for investment apartments in Sydney, but if you use the property as your primary residence it becomes exempt from land tax, and some first home buyers may qualify for stamp duty concessions at purchase (though this doesn't affect ongoing taxes).
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Sydney.
How much does landlord insurance cost for an apartment in Sydney in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Sydney costs around A$350 to A$500 per year (US$225 to US$320 or EUR 205 to EUR 295), covering landlord-specific risks like tenant damage, loss of rent, and liability.
Depending on coverage level and apartment value in Sydney, landlord insurance can range from around A$280 per year (US$180 or EUR 165) for basic coverage to A$700 or more (US$450 or EUR 415) for comprehensive policies with lower excesses and additional protections like flood cover.
What's the typical property management fee for apartments in Sydney as of 2026?
As of early 2026, the typical property management fee for apartments in Sydney is around 5% to 8% of weekly rent plus GST, which works out to roughly A$100 to A$160 per month (US$65 to US$100 or EUR 60 to EUR 95) on a median-rent apartment.
In Sydney, property management fees typically range from 5% of rent (plus GST) for basic management in competitive suburban markets to 9% or more (plus GST) for full-service management in premium inner-city areas, with letting fees of around one week's rent charged each time a new tenant is found.
Standard property management fees in Sydney typically include rent collection, routine inspections (usually quarterly), coordinating maintenance requests, handling tenant communications, and managing lease renewals, though marketing costs, tribunal representation, and end-of-lease reports often incur additional charges.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sydney, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
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 authoritative | How we used it |
|---|---|---|
| Domain Rental Report | One of Australia's largest property portals with rigorous research methodology. | We used it for Sydney median unit rent and vacancy rate data. We also used it to verify quarterly rent trends. |
| SQM Research Weekly Rents | Long-running Australian housing data provider cited by major media. | We used it for the most current January 2026 asking rents. We used these figures to calculate gross yields. |
| SQM Research Asking Prices | Transparent weekly index of advertised property prices. | We used it for Sydney unit asking prices to compute yields. We combined this with rent data for rent-to-price ratios. |
| NSW Planning STRA Framework | Official NSW government source for short-term rental rules. | We used it to confirm STRA legality and the 180-day cap. We referenced it for registration requirements. |
| Revenue NSW Land Tax | NSW tax authority and source of truth for land tax settings. | We used it to explain when land tax applies to investment apartments. We referenced the thresholds and rates. |
| Revenue NSW Surcharge Land Tax | Official NSW source for foreign-owner surcharge rates. | We used it to warn foreign buyers about extra annual costs. We quantified how surcharges affect net yields. |
| Australian Taxation Office | Australia's tax authority and definitive source on rental expenses. | We used it to list typical landlord costs by category. We ensured our net yield calculations reflect real expenses. |
| ABS Census QuickStats | Australia's official statistics agency with authoritative household data. | We used it for median household income in Greater Sydney. We applied this to estimate tenant affordability. |
| AirDNA Sydney Data | Widely used short-term rental analytics provider with consistent metrics. | We used it to estimate Sydney STR occupancy and daily rates. We calculated short-term gross yields for comparison. |
| Cotality Home Value Index | Industry-standard property data provider used by banks and researchers. | We used it to cross-check Sydney dwelling values. We triangulated yields against multiple price sources. |
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