Top Suburbs for Rental Yield in New South Wales
Real estate is a hyper-localised market. When doing your research for your investment property, it’s important to look at things at a suburban level.
Every neighbourhood follows its own market trends that may not coincide with what’s happening nationwide or statewide. Often, you’d see similar properties in different area codes with vastly different values and rental yields.
To help you in your investment journey, here’s an overview of high-rental yield suburbs in NSW.
A quick snapshot of NSW real estate
New South Wales, and Sydney specifically, has been a hotspot among property investors. Many want to capitalise on the growing demand for housing in the CBD and surrounding areas. With soaring property values, rental costs, and living costs in Sydney, more investors and renters are flocking to suburbs in regional NSW.
With property values in NSW being some of the most expensive in the country, residents are looking at their rental options more seriously. This is a great advantage for property investors, however, getting into the investment market can be difficult with median residential dwelling prices at $1,217,600.
Rent prices in NSW have also increased in the last five years due to higher demand and interest rate hikes. To make the most out of the NSW rental market, you need to ensure your investment plan aligns with real estate trends.
Suburbs in Sydney with the highest rental yield
Sydney is one of the top real estate markets in Australia. It’s a popular destination for property investors because of the strong population growth and economic activity. The CBD and North Sydney, in particular, are major employment hubs.
There’s also a strong rental demand in Sydney. According to SQM Research, residential vacancy rates in Sydney are at 1.4%. This is especially low considering a healthy vacancy rate sits at 3%. Take note that it has slightly increased from last year’s 1.2%.
Here are the top-performing suburbs in Greater Sydney based on gross rental yields:
Top rental yield by Suburb in Greater Sydney (houses)
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Blue Haven | Central Coast | 4.5% | $654 |
| San Remo | Central Coast | 4.4% | $595 |
| Kanwal | Central Coast | 4.3% | $629 |
| Gorokan | Central Coast | 4.2% | $583 |
| Mannering Park | Central Coast | 4.2% | $613 |
| Lake Haven | Central Coast | 4.2% | $624 |
| Watanobbi | Central Coast | 4.2% | $611 |
| Wyoming | Central Coast | 4.2% | $696 |
| Halekulani | Central Coast | 4.2% | $622 |
| Wadalba | Central Coast | 4.2% | $733 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
The latest rental report from CoreLogic reveals that the best area to invest in Greater Sydney is the Central Coast. All the highest rental yield suburbs can be found in the area with yields between 4.5% and 4.2%. Although rental yield percentages are comparable, the median rental value ranges from $583 to $733, a $150 difference. As an investor, it may be a good idea to explore your options in or near the Central Coast.
Top rental yield by Suburb in Greater Sydney (units)
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Rosehill | Parramatta | 6.4% | $573 |
| Warwick Farm | South West | 6.3% | $486 |
| Granville | Parramatta | 6.1% | $573 |
| Harris Park | Parramatta | 6.0% | $556 |
| Berkeley Vale | Central Coast | 6.0% | $464 |
| Liverpool | South West | 6.0% | $507 |
| Auburn | Parramatta | 6.0% | $629 |
| Merrylands | Parramatta | 5.9% | $552 |
| Lakemba | Inner South West | 5.9% | $534 |
| Fairfield | South West | 5.8% | $487 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Rental yields for units in Sydney have performed better than houses with an average rental yield of 6%. Rosehill has the highest rental yield in the top suburbs with 6.4%. Most of the suburbs in the top 10 performing areas have similar rental yields. Fairfield has the lowest rental yield with 5.8%. Median rental prices vary with the highest being $629 in Auburn and the lowest in Berkeley Vale at $464.
Suburbs in regional NSW with the highest rental yield
In light of high property and rent prices in Sydney, more people are looking to regional NSW as a place to live. A lot of property investors have started to see the potential of regional NSW, as well, taking advantage of lower property values with higher median rental values.
Top rental yield by Suburb in regional NSW (houses)
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| West Wyalong | Central West | 8.9% | $450 |
| Boggabri | New England and North West | 8.5% | $431 |
| Wellington | Far West and Orana | 7.8% | $442 |
| South Lismore | Richmond – Tweed | 7.6% | $553 |
| Werris Creek | New England and North West | 7.5% | $426 |
| Culcairn | Murray | 7.2% | $461 |
| Deniliquin | Murray | 7.1% | $437 |
| Narromine | Far West and Orana | 6.9% | $451 |
| Narrandera | Riverina | 6.8% | $397 |
| Lismore | Richmond – Tweed | 6.5% | $565 |
ource: CoreLogic Best of the Best 2024 (December 2024) report
Regional NSW has some of the highest rental yields in the state ranging from 6.5% to 8.9%. The highest rental yield in regional NSW is almost double the yield of the top suburb in Greater Sydney.
However, unlike Greater Sydney where rental yields in the top suburbs are quite similar, regional NSW has notable differences in rental yields between each suburb. There’s also a large disparity between rental yield percentages and median rental values. Lismore, for instance, has the lowest rental yield but the highest median rental value.
If you’re an investor who wants to make the most out of your real estate investment, the location may heavily impact potential rental yields.
Top rental yield by Suburb in regional NSW (units)
| Suburb | Region | Rental Yield | Median Rental Value |
|---|---|---|---|
| Muswellbrook | Hunter Valley exc Newcastle | 6.1% | $381 |
| Murwillumbah | Richmond – Tweed | 6.0% | $493 |
| Grafton | Coffs Harbour – Grafton | 6.0% | $402 |
| Orange | Central West | 5.9% | $431 |
| Wagga Wagga | Riverina | 5.9% | $411 |
| Crestwood | Capital Region | 5.8% | $448 |
| Moama | Murray | 5.8% | $388 |
| Taree | Mid North Coast | 5.8% | $365 |
| Lavington | Murray | 5.8% | $354 |
| Queanbeyan | Capital Region | 5.7% | $458 |
Source: CoreLogic Best of the Best 2024 (December 2024) report
Suburbs in regional NSW have lower unit rental yields compared to house rental yields. Although not by much, it’s still a significant difference that you need to consider when choosing an investment property.
Compared to the unit rental yields in Greater Sydney, regional NSW units aren’t that far behind. If you’re an investor looking to dip your toes in the NSW market for a significantly lower cost, regional NSW may be a great place to start.
Want to invest in NSW real estate?
For a successful property investment, you need to find the best financing. Get in touch with loans.com.au and learn about your investment home loan options. Whether you’re buying an investment property or building one from scratch, we have investment loans that can match your needs. Call 13 10 90 or apply online today!
Find out in under 2 minutes if you qualify for one of our low rate home loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
