Sydney’s Highest Rental Yield Suburbs in 2024: Most Lucrative Picks

Rental yield is an important concept that property investors and first-home buyers looking to invest should understand. We are here to explain the ins and outs of rental yield, to help you get awesome returns from your investments (or future investments).

READ ON if you’re looking to invest in Sydney and want to learn more about rental yield!

What Is Rental Yield - Person Showing Two Dummy Houses Over His Hands On A Table Differentiating Rent Vs Buy A Property

What is Rental Yield?

Simply put, gross rental yield is your rental income expressed as a percentage of your property’s value.

It can be calculated like this:

Gross Rental Yield = (Annual Rental Income/Property Value) x 100

If maths is not your strong suit, don’t worry! We are here to make your property journey simpler.

Rental yield is an important factor that investors consider before purchasing a property, as it helps reveal the best investment opportunity.

Rental Yield - Person Showing A Key Infront of a Property

Imagine you have a property valued at $800,000 in a suburb with a 5% rental yield. Your annual income will be $40k! So, the more rental income you receive, the the higher your rental yield.

For property investors, you can identify areas with high and/or increasing rental yield to ensure you get the best returns on investment to enjoy a positive cash flow.

It can help you to assess your investment property and see how it compares to others in the area. If we’ve piqued your interest, you can learn more about the rental market by clicking here.

Sydney’s Rental Yield

Rental Yield - View of Opera House Australia with Sydney Harbour Bridge over a road where a car is moving past

Sydney is a bright and bustling city in New South Wales, Australia, with a population of 51,84,896 in 2024 (According to World Population Overview), projected to grow to 58,75,309 by 2035.

There is definitely a reason for the phrase ‘Generation Rent’, with about 31% of Sydney’s population living in rental accommodation.

Sydneysiders are LOVING apartment life, opting to rent in places with good access to jobs, transport and facilities, rather than buying a house in locations that are further away.

best yielding suburbs for rental properties in nsw - Person showing price and contract for a investment property to another person

The median listing price for houses in Sydney is $1,442,000 with a $730 per week median rent and a 2.7% rental yield . For units, the median price is much lower at $780k, with $660 rent per week and a 4.4% rental yield. (Source: Savings.com)

Depending on your goals, this could mean that you may be better off investing in apartments, as they have a higher yield compared to houses.

Supply & Demand in Sydney’s Rental Market

A lot has been going on in Sydney’s rental property market. The demand for renting is slowly easing compared to 12 months ago. According to Domain, buyer demand in Greater Sydney has decreased by 19.6%, and by 20.4% across all capital cities.

Highest Rental Yield Sydney - Person Giving A Key Of A House To Another Person

Dr Nicola Powell, Domain’s Chief of Research and Economics, claims that this change “should logically feed into a higher vacancy rate, but that will take time. This could be an early indicator of an increase in vacancy rates sometime this year.”

However, it’s important to note that even with this easing in demand, the rental market remains competitive in many areas. Factors such as interest rates, economic conditions, and housing supply constraints can still play a significant role in shaping the market.

rental yield by suburb - A rental vacancy board in front of a house

Currently, the vacancy rate is sitting at 1.7% (July 2024) in Sydney, with rental supply plummeting over the past year in every capital city (Source: SQM Research).

This means that there are a lot more people looking to rent compared to the supply of properties available, leading to rising rent prices, higher yields and happy investors!

The Trend in Sydney’s Rental Yield

Simon Pressley, head of research at Propertyology, states “We are seeing rental prices all over Australia go through the roof.”

However, Mr. Pressley warned investors against chasing the highest rental yield in Sydney, noting they should consider potential capital growth which could deliver greater returns and holding costs.

Property investment strategist Lloyd Edge states, “if you don’t get a good yield, then you won’t have good cash flow and you’ll get maxed out on negative gearing.” So don’t forget to check your rental yield!

In recent years, Sydney’s gross rental yields have been mostly steady, sticking around 5.5% for units and 2.5% for all houses, according to SQM Research. 

Sydney’s Best Rental Yields

As an investor, you’ll want to know about the best Sydney rental yield by suburb.

Rental Yield Sydney - View Of Sydney Opera House From Drone

In Sydney NSW, some of the suburbs with high rental yield for units include (Source: SQM Research)

  1. Granville: 6.3%
  2. Auburn: 6.2%
  3. Lakemba: 6.1%
  4. Fairfield: 6.1%
  5. Wiley Park: 6.1%
  6. Harris Park: 6.1%
  7. Parramatta: 6%
  8. Schofields: 5.9%
  9. Warwick Farm: 5.9%
  10. RockDale: 5.8%

Lakemba, nestled in Sydney’s Inner South West, tops the list for high rental yield investments amidst the city’s soaring property market. the appeal lies in their accessibility to essential amenities like schools and transport hubs, combined with relatively affordable property prices compared to other Sydney locales.

The rental market in these areas flourishes with a diverse range of property types, catering to varied tenant demographics, from families to young professionals. This diversity, alongside a steady demand for rental properties, contributes to the stability and growth potential of rental yields.

Investors eyeing these suburbs can capitalise on the promise of solid returns, backed by both rental income and the prospect of long-term capital appreciation, making Lakemba undisputed leaders in Sydney’s competitive rental landscape.

best rental yield nsw - employees are walking on office premise

Liviti’s Top Rental Yield Sydney

Here’s the rundown on Liviti’s Top 3 Projects in Sydney:

  1. The Crescent, Fairfield: 6.1%
  2. Fox Lane Rockdale: 5.8%
  3. Jasmine Schofield Gardens: 5.9%

The Crescent, Fairfield – Top Rental Yield Sydney

The Crescent, Fairfield has an average rental yield of 6.1%, offering luxurious 2 & 3-bedroom apartments. Crescent is centrally located with great proximity to public transport, Parramatta CBD, and open spaces such as Western Sydney Parklands.

Fairfield has an amazing global dining scene, as well as fantastic entertainment options for families.

Crescent Fairfield

Crescent Fairfield – Bedroom

Fox Lane , Rockdale – Top Rental Yield Sydney

Fox Lane, Rockdale has an average rental yield of 5.8%, so investors can expect great returns from these premium apartments.

Fox Lane offers exceptional lifestyle benefits with immediate access to a wide range of amenities, making it the perfect choice for both owner-occupiers and investors.

Fox Lane in Rockdale offers a combination of studio, one, two and three-bedroom apartments, providing the perfect option for all lifestyles, from first home buyers to investors, families and downsizers. It also features spacious interiors, with open-plan layouts, generous balconies and quality finishes that tenants can’t help but love.

Fox Lane, Rockdale

Jasmine Schofield Gardens – Top Rental Yield Sydney

Jasmine Schofield Gardens stands out as a premier choice, offering an impressive 5.9% rental yield and an ideal blend of quality, value, and prime location. Situated just minutes from Sydney’s North West business hub, this latest addition to the master-planned Schofield Gardens community is surrounded by green open spaces, creating a fresh and eco-friendly environment.

The Jasmine Apartments are designed with eco-conscious features such as LED lighting, energy-efficient appliances, natural airflow, and thermal windows that mitigate UV impacts. Residents can indulge in a rich lifestyle with convenience and comfort, making Jasmine Schofield Gardens the perfect spot for ultimate relaxation and entertainment.

Jasmine Schofield Gardens

We hope with all this talk about the rental market, yields and investment properties, you now have a better understanding of how to get the best return on investment and secure the right opportunity.

Looking for some guidance? Contact Liviti Today to kick-start your investment journey and book a consultation!

Frequently Asked Questions (FAQs)

Q: How to calculate rental yield?
A: To calculate rental yield, divide the annual rental income by the property’s value and multiply by 100. For example, if your Sydney rental yield is $30,000 annually on a $600,000 property, the rental yield would be 5%.

Q: What is a good rental yield?
A: A good rental yield varies by location and your goals for that property. In Sydney, a good rental yield is typically around 4-5% for units, which is higher than the average rental yield for houses.

Q: What is rental yield?
A: Rental yield is the annual rental income expressed as a percentage of the property’s value. It’s a key metric to identify the best rental yield suburbs and high yield property investments.

New Sydney Tower concept – A Refreshing CBD Revamp

The new concept proposal

An exciting new construction project in the Sydney CBD has been proposed to the City of Sydney Council and we have never been more excited!

The project proposal is expected to cost more than $291 million and will feature new leisure, entertainment, and commercial facilities for all of us to enjoy. It is likely to produce some hefty economic rewards and further consolidates the hustle and bustle of commercial activity on George Street. It’s a truly exciting addition to Sydney’s impressive list of high rise buildings.

The tower concept is proposed to be a multi-faceted building that can cater to functions of any kind possible! It is expected to have:

  • 32,602 square metres of office building space
  • 16,822 square metres of hotel space
  • 3,366 square metres of back-of-house theatrical space
  • 4 basement floors

Image: Urban Developer

(Image: Urban Developer)

The project concept also outlined extensive back-of-house- facilities, and a series of upgrades to the State Theatre. An example includes the proposed basement levels that will act as a loading facility for the theatre located below.

It’ll never be a dull moment here. It is expected to provide us with ground-level retail outlets, hotel accommodation, and conference spaces for us to enjoy.

The 33-storey, mixed-use tower is expected to replace the yet-to-be demolished buildings at 458-472 George Street. The demolition of those two buildings that currently occupy the space has been approved and will likely begin demolition shortly. The Sydney tower concept is also proposed to be built upon a podium on top of the iconic, heritage-listed State Theatre.

The development proposal made it very clear that the concept does have the intention not to infringe on the functions or experience that the State Theatre offers.

On the other hand, the proposal stressed that the tower concept would be vertically separate from the Theatre below and would be beneficial in the long-term preservation of the heritage-listed building, and would supplement the surrounding streetscape.

(Image: Laura Cros @locreaphoto)

Inside the ICON: The Sydney State Theatre

The Sydney State theatre, located on Market Street is an iconic, heritage-listed building that has long served Sydney as a powerhouse entertainment facility. Since 1929, when the theatre officially opened, The State Theatre has been notorious for hosting some of the most sought-after domestic and international comedy, music and film acts that none of us could afford to miss. It has lived up to its long reputation in consistently delivering “entertainment of unparalleled performance” to its patrons.

The Theatre interior is unmatched and is able to cater to the needs and wants of patrons and performers with unmatched elegance and grandeur. The bright red and gold aesthetic, paired with the classic interior is absolutely divine.

Image: Sydney State Theatre

(Image: Sydney State Theatre)

The new concept proposal is expected to further consolidate and complement the timeless and show-stopping design of the Theatre interiors and exterior. The proposal documents have underlined that the close proximity of the tower concept to notable buildings in the Sydney CBD such as the Queen Victoria Building (QVB), Gowings, the Theatre, and several other iconic buildings creates an abundance of opportunities for conservation of the past and the modernisation of iconic Sydney buildings in the Sydney CBD.


To learn more about exciting real estate developments, trends and projects we encourage you to connect with us.

Click here to discover more exciting news!

The Best Suburbs in Sydney to Buy Property

The three most important factors about buying a home are location, location & location. In fact, finding the right location for your home already decides the majority of your success!

Sydney, as big as it is, is full of diversity meaning no two suburbs are the same. It can be helpful to have an idea of what you’re looking for in a suburb or criteria it must meet in order for you to live there. For some people, it’s all about affordability and for others, the final decider could be quality schools in the area or good and reliable transportation options.

We’ve compiled a list of some of the best Sydney suburbs to live in by region to make this decision a little easier for you.

best suburbs sydney

But first, let’s ask the big question:

What makes a suburb desirable?

Sydney suburbs that are convenient in terms of location, amenities and facilities like shopping, dining and transportation as well as visually appealing, are more popular amongst property buyers and investors. However, liveability is heavily dependent on the life stage of a buyer or investor, and greatly influences your reasons for moving to a specific area.

Some factors include:

#1 A high sense of neighbourhood safety

Suburbs with a high sense of neighbourhood safety and low crime rate are significant drawcards for young families.

By global standards, Sydney is an extremely safe city to live in. In fact, it was ranked the fifth safest city in the world in 2019 by The Economist Intelligence Unit, beating out ongoing rival Melbourne, which took 10th spot.

But within the city, some suburbs might be at lower risk than some when it comes to crime statistics.

So, it’s important to have some research on the suburb’s crime rate before deciding to move into your new home. For example, the northwest and southwest suburbs tend to have a lower rate of recorded criminal incidents by population, while the inner city suburbs have higher crime rates due to their central locations, according to ABS data.

family friendly suburbs

#2 Well-regarded local schools

For those with children or intending on having children in the future, you might look to live close to education.

Normally, a suburb that is in close proximity to schools or universities’ catchments tends to be more livable, bonus points if it’s zoned for a well-regarded public school.

With My School website, you can find the list of all high-performing schools in your target suburb, see their rank nationally and make the best decision for your children’s education.

#3 Exciting entertainment, dining & shopping options

When looking for a property to buy, most people tend to gravitate towards areas with local amenities nearby. Things like shopping centres, especially those with a wide range of retail and grocery stores, as well as a high density of cafes and restaurants make a suburb incredibly liveable.

Entertainment facilities are another thing to take note of. Exciting places to visit or bring the kids to can be a great break from your daily routine.

  • Is there a movie cinema nearby to unwind
  • Is there a fun karaoke bar to belt out your favourite song?
  • Is there any playground, swimming pool or kid cafe in the neighbourhood?

best suburb has entertainment, dining & shopping options

#4 Nearby health facilities

A popular phrase homeowners use often when deciding on a location are “just in case”. Therefore, the presence of hospitals, GP clinics and other medical facilities are essential for all stages of life.

These local health facilities can also include:

  • General practitioners and medical centres
  • Dentists
  • Chiropractors
  • Nursing homes
  • Psychologists
  • Pathologists

median house price

#5 Suitable for your age group & lifestyle

Younger people tend to navigate towards Sydney suburbs with a lower median house price. A place with a short commute to their work or study and plenty of urban restaurants and nightlife are big factors for young people when suburb hunting.

On the other hand, the older generation will be more inclined to purchase a property in calmer areas like the Illawarra region, where they can settle down, maybe retire in and live comfortably with their smaller family.

family friendly suburbs

#6 Easy access to employment hub

Let’s face it! You normally spend most of your time at your workplace of employment, and all you want is to reduce the travel time to and from your work.

Imagine living in a suburb that is located only 10 minutes from your employment, you can get those few extra minutes of sleep in the morning or squeeze in a quick morning exercise, all to improve your quality of living.

For that reason, suburbs with places of employment nearby tend to be more liveable than others. The inner city and suburbs with a short commute to Sydney’s CBD often attract more homeowners for their desired convenience.

best suburbs

#7 Public Transport and Walkability

The most liveable suburbs are found to be the ones with a good walk score and lots of transportation options.

Transport options

Walkability

Sydney’s inner-city suburbs have the highest walk score meaning most of your daily errands or activities can be completed on foot. This is a desirable trait of a suburb as it promotes healthy living through exercise and can save you lots of money on fuel and public transport.

Trains and Light Rails

Most suburbs have a train station but only a few have a light rail. Popular suburbs tend to be the ones that are near Sydney city and make it easy to get to. A good train or light tail line is crucial in this instance.

The most desirable one would have a short commute, without too many stops and without having to change trains or light rails. This makes sure that you get to your desired location quickly and stress-free.

Buses

One thing to be aware of is the close proximity of your home to the nearby bus stop. Often, properties with a bus stop on the same street are more desirable as it shortens the duration of your commute.

Ferrys

Some suburbs in Sydney like Manly and Parramatta are easier to get to via Ferry. Not only is it a quicker and more convenient mode of transport, but it can also guarantee you a gorgeous view of Sydney Harbour on the journey.

#8 Green Space & the Outdoors

Green, open spaces like parks and reserves are common factors in Sydney’s most liveable suburbs, providing fresh air and higher oxygen levels.

The convenience in terms of location offers a great opportunity to stay fit or to take a break from technology by immersing yourself in nature and is perfect for young families who need to release energy.

A green suburb can gain lots of popularity due to the amount of tree coverage it has as it provides shade, reduces air pollution and can increase property value. The best suburbs with the greatest percentage of tree coverage can be found in Sydney’s outer west.

green space in Sydney

#9 Area developments

When hunting for a location to live in Sydney, suburbs undergoing development or having plans to are the most attractive ones. This means that the location you are looking into is getting a lot of attention from the governments and investors alike, and have the potential to become a livable suburb in the future.

Often, people will migrate to these areas for their newer and more modern buildings, amenities and lifestyle. For example, Hurstville is currently evolving to become a more urban, innovative, accessible and green suburb, attracting an influx of homeowners to reside in the area.

modern apartment blocks

So, do more expensive mean better?

The median house prices in Sydney are sitting at $1.6 million, according to the latest Domain figure. However, these house prices can vary significantly from suburb to suburb.

Surrounding amenities, features and landmarks can be major contributors to a pricier area like the Northern and Eastern suburbs, where they are more likely to sell for over $1.6 million.

But that’s not to mean that cheaper locations can’t be rich in amenities either. In fact, the south and west suburbs of Sydney can contain much more affordable housing options, below $1 million whilst still containing all the convenient facilities you need in your life.

Not to mention, if you can secure a property in the suburbs that are undergoing great development in infrastructure and amenities, congratulation, you’re on your way to building great wealth through property.

So, when it comes to choosing a suburb that is desirable and livable, everyone might have a different definition and a different budget. It depends entirely on your personal financial situation, your desires and how they align.

upper north shore

Best suburbs to live in Sydney

Now that we understand what makes a suburb in Sydney desirable, we can look further into which areas and more specifically which suburbs in those areas are the best to live in.

Eastern suburbs

Home to some of the safest and most desirable suburbs in Sydney, this area is home to some of the priciest suburbs in Sydney. You can easily find spectacular water views, peaceful parks and schools, not to mention easy access to the Sydney harbour and the biggest employment hub.

Some of the top eastern suburbs include:

Double Bay
  • Ideal for Families, professionals and retirees
  • Under 30 minutes to Sydney CBD – via car, bus or ferry!
  • One of the most scenic commutes – passing Sydney Harbour Bridge and Sydney Opera House
  • Pet friendly AND family friendly – lots of schools and parks
  • Lots of high-end boutiques and dining options
Zetland
  • Ideal for University students, young professionals and families
  • New age modern suburb – new modern apartment blocks, new shopping centres
  • Within walking distance to Green Square Station which is just a short ride away from Central and Wynyard
  • Despite the apartments and high-rises, there is plenty of green and open spaces
  • Short trip to UNSW and Sydney children’s hospital

sydney's eastern suburbs' apartments

Inner West Sydney suburbs

Sydney’s inner west has undergone transformations and clean ups that have made it the trendy and welcoming area it is today. With tightknit communities, a wide range of cuisines and convenient public transport it is quickly becoming a central location to invest in.

Some of the best inner west suburbs include:

Dulwich Hill
  • Ideal for professionals, small families and retirees
  • Large public spaces – promotes a sense of community and welcoming environment
  • Dulwich hill train and light rail station
  • Suburb with one of the most diverse backgrounds in the inner west
  • Friendly dining and drinking options
Croydon
  • Ideal for families and retirees
  • One of the most family friendly and therefore safest suburbs in the inner west
  • A good mix of well-kept homes of character and modern apartments
  • More affordable than its nearby suburbs
  • Home to Centenary Park – big open space with sporting fields, a playground and off-leash dog area
  • Lots of churches of various faiths and religions and high quality schools
Newtown
  • Ideal for university students and young professionals
  • Strong international influence – variety of people, restaurants and overall atmosphere
  • Buzzing nightlife – rustic and urban restaurants, pubs, bars and live music!
  • Train station, bus stops and King St main road running right through it and nearby all the surrounding amenities
  • Under 20 minutes to Sydney CBD

sydney suburb in the Inner west

Source: Escape.com.au

Western Sydney

West Sydney suburbs has seen major improvements lately in terms of liveability. Containing some of the most affordable suburbs, it is increasingly becoming more populated with people being drawn to the shopping opportunities, entertainment facilities, dining options and schooling offered.

Some of our favourite western suburbs include:

Granville
  • Ideal for indepent youth, mature and established individuals, couples and families
  • One of the more affordable suburbs in Sydney
  • Family friendly
  • Quiet and convenient – many local amenities like shops and restaurants within walking distance
  • Easily accessible train station with frequent trains to the Sydney CBD
Parramatta
  • Ideal for young couples, young professionals, university students
  • Incredibly multicultural – ethnically diverse people and cuisines
  • Home to Western Sydney University Parramatta campus
  • Local Westfield with retail and grocery stores
  • No surprise that Parramatta park in this western Sydney suburb – large open spaces perfect for exercise and relaxation, has several historical buildings and hosts many events all year round
Liverpool
  • Ideal for families, professionals, university students
  • Lower median house price – property and dining
  • Incredible diverse – over 140 different languages spoken
  • Liverpool Westfield has retail and grocery shopping covered
  • Home to Western Sydney University Liverpool campus
  • 4 connected parks – sporting fields, paths for walking and running and a leisure centre
  • Under 30 minutes to Western Sydney airport

Western suburb in sydney

North Sydney

North Sydney could be classified as one of the most liveable suburbs in Sydney. The stunning views, beaches, amenities and overall vibe make this area of Sydney very popular amongst property owners and tourists.

Some of the best northern suburbs include:

Hornsby
  • Ideal for families, retirees, professionals
  • An upper north shore suburb
  • One of the highest all-round rated suburbs – affordable housing, safe, green, well kept
  • Most complete suburb in terms of amenities – rich in entertainment, dining, drinking and shopping options
  • Large amount of public green spaces
  • Numerous high quality schools
Manly
  • Ideal for professionals, families, surfers and retirees
  • Beachside suburb in northern sydney
  • Short and scenic ferry ride to and from Circular Quay
  • A wide choice of quality restaurants, bars, cafes and retail outlets

northern suburbs

South Sydney

Sydney’s south is perfect for families due to its number of open spaces, schools, affordability, convenience and accessibility to Sydney CBD, beaches and other suburbs. It’s constant improvements and upgrades see it gaining traction due to both its visible aesthetic, community and overall ambience

Our best suburbs in the Sydney’s south include:

Kogarah
  • Ideal for professionals, young professionals and families
  • Under 30 minutes from the Sydney CBD by car, train or bus
  • Large portions of greenery – Scarborough Park and Civic Avenue Reserve
  • One of the highest population : school ratios in Sydney – many quality primary, secondary schools and TAFE
  • A good mix of suburban houses and modern apartments
Hurstville
  • Ideal for families, professionals and young professionals
  • Follows “correct” suburb design – high-density apartments near public transport and lower-density residential areas further out
  • A southern suburb home to Hurstville Westfield and Hurstville Central – incredibly convenient amenities
  • Great for families – low crime rate
  • Placed in a physically ideal location – The Sydney CBD, other suburbs and many beaches are easily accessible by car, train or bus
  • Not shy of parks and reserves

southern suburb

Illawarra

Illawarra – probably the most laidback region in Sydney. Consisting of multicultural communities, this region is incredibly welcoming and accepting to all visitors and residents. With stunning coastal views and attractions, as well as great education options and entertainment, dining and shopping, the Illawara region is the perfect escape from the busy city life.

Some of the best suburbs in Illawarra include:

Wollongong
  • Ideal for retirees, families and university students
  • Home to Wollongong University as well as many other schools
  • It has many great beaches and views – Wollongong City Beach, Beach Cove, and Wattamolla Beach to name a few
  • Lower median house price
  • Home to Wollongong Central Shopping Centre, Crown Street Mall and many cinemas
Kiama
  • Ideal for retirees, families and established coupled
  • High demand market
  • Scenic seaside village – safe and peaceful area
  • Home to Kiama Blowhole – the largest in the world
  • Numerous shopping boutiques, restaurants and cafes – also live music at the annual festival and by the beach

beachside suburb

Whether you’re looking to live in an inner west suburb, eastern suburb, north shore suburb, west Sydney, Illawara or south Sydney, each area consists of some of the best suburbs containing a multitude of convenient facilities and benefits that will make it the perfect location for you.

For more information feel free to contact us at 9056 4311 or get in touch here. At Liviti we’re more than happy to give you the guidance you need to get your foot in the door figuratively and literally!