Highest Rental Yield Sydney – Which Suburbs Are Best?

Ah, Sydney. Australia’s most competitive rental market. From Bondi’ in the East to Parramatta in the West and everywhere in between, there’s a booming construction of new dwellings that continues to be outpaced by the increasing demand for housing. And yet, more continue to flock to Sydney for the city’s unmatched harbour, beaches, and leafy suburban charm. 

Sydney’s low vacancy rate of 1.5% (SQM Research) and the median weekly rent of $770 ($220 more than Melbourne’s median rate, might we add) are proof that the rental market is not slowing down anytime soon. For investors crunching numbers, that’s an average rental yield of 3.1% – there has been a 9% in weekly rent over 2024. We’ve detailed which suburbs have contributed the most below.

1. Auburn

With the highest rental yield on this list at 6.3%, Auburn offers comparative affordability with the rest of metropolitan Sydney and easy access to local schools and cultural centres. It is just 19km west of the city’s CBD and is forecasted to grow from 11,546 (2024) to 17,419 by 2046. 

Median unit price: $560,000 (No change from Nov – Oct 2024)

Median weekly rent: $580 (+11.5% from Nov – Oct 2024) 

Median rental yield: 6.3%

2. Mays Hill

Another Western Sydney suburb, Mays Hill is 24 km from the Sydney CBD. Close proximity to Parramatta offers residents access to a wealth of schools, shopping centres, and recreational spots like Parramatta Park. With a rental yield of 5.9%, investors can look forward to steady returns, especially with the upcoming launch of the Parramatta light rail (late 2024, early 2025).

Median unit price: $566,000 (+5.8% from Nov – Oct 2024)

Median weekly rent: $620 (+12.7% from Nov – Oct 2024) 

Median rental yield: 5.9%

3. Warwick Farm

Warwick Farm sits 31km southwest of Sydney’s CBD, sidling Liverpool, Cabramatta, and  the Georges River. Unit prices are considerably more accessible with a median purchase price of $445,000, resulting in a lucrative rental yield of 5.9% (2024). More than half of the population in Warwick Farm are renting.

Median unit price: $445,000 (+3.5% from Nov – Oct 2024)

Median weekly rent: $450 (+7.1% from Nov – Oct 2024) 

Median rental yield: 5.9%

4. Mascot

Mascot is home to the Sydney Kingsford Smith Airport and is part of the Bayside Council. Today, Inner-south Mascot is a mix of residential and commercial property – historically, the suburb has always been a major commercial and industrial hub for Sydney. Over the last 10 years, the population has more than doubled (ERP reports from ABS). Unit prices have increased to $850,000 and average rental yield is 5.8% (as of late 2024).

Median unit price: $850,000 (-2.3% from Nov – Oct 2024)

Median weekly rent: $950 (+11.8% from Nov – Oct 2024) 

Median rental yield: 5.8%

5. Liverpool

27 km from the Sydney CBD, Liverpool is the central hub for the Western Sydney region — the suburb is host to Western Sydney University, Liverpool Hospital, and the planned Western Sydney Airport that is slated for completion in 2026. 

Median unit price: $490,000 (+2.1% from Nov – Oct 2024)

Median weekly rent: $480 (+6.7% from Nov – Oct 2024) 

Median rental yield: 5.7%

6. Bankstown

Bankstown was identified as a growth precinct under the Transport Oriented Development (TPO) program. The program will see potential rezoning and development of up to 12,500 new homes – specifically within the immediate proximity of the train station. Part of the Canterbury-Bankstown LGA, Bankstown is one of Sydney’s most diverse and cultural areas – more than 40% of its residents are renting. 

Median unit price: $531,000 (+4.7% from Nov – Oct 2024)

Median weekly rent: $550 (+10.0% from Nov – Oct 2024) 

Median rental yield: 5.6%

7. Homebush

Homebush is a charming inner-west suburb 15 km from central Sydney. Homebush is renowned for its sports facilities at Sydney Olympic Park and has an excellent network of bus and train transport links connecting it to the surrounding areas. 

Median unit price: $662,000 (+2.2% from Nov – Oct 2024)

Median weekly rent: $685 (+8.7% from Nov – Oct 2024) 

Median rental yield: 5.6%

8. Arncliffe

Arncliffe is part of Bayside council and is located 11 km south of the Sydney CBD. Much of Arncliffe’s appeal comes from its proximity to the Sydney Airport and Wolli Creek. The suburb is host to both residential and commercial properties and features easy access to local parks like Riverine Park and Tempe Recreation Reserve along the Cooks River. 

Median unit price: $740,000 (+4.2% from Nov – Oct 2024)

Median weekly rent: $750 (+4.2% from Nov – Oct 2024)

Median rental yield: 5.5%