Calga - Kulnura Leads Sydney Suburbs at 4.4% Gross Yield

Yields across {{suburb_count}} Sydney suburbs range from {{suburb_1_yield_fmt}} in {{suburb_1_name}} down to under 2% in the premium harbour and eastern beaches pockets. That spread is wider than the gap between short-term rental and long-term rental at the city level, which means where you buy matters more than how you rent it out. The pattern is consistent: yield concentrates on the city's outer fringe, while inner Sydney trades income for capital growth.

{{suburb_1_name}} Tops Sydney Yields at {{suburb_1_yield_fmt}}, Roughly 1.6 Times the City Median

Gross yields = annual income / sale price. Based on 3-bed house medians. The dashboard shows every property type and bedroom count.

Outer-Ring Suburbs Win Because Rents Hold Up Where Prices Have Not Caught Up

{{suburb_1_name}} sits at the top of the ranking with {{suburb_1_yield_fmt}} gross yield, driven by an entry price of roughly {{suburb_1_price_fmt}} against the city-wide 3-bed median of {{sale_price_fmt}}. The pattern here is purely arithmetic: rents on Sydney's outer fringes do not compress in proportion to land prices. Tenants priced out of the inner suburbs follow the train lines and motorways outwards, sustaining demand in places where investors can still buy at sub-million-dollar entry points. The result is the widest rent-to-price gap in the metropolitan area.

{{suburb_2_name}} and {{suburb_3_name}} round out the top three at {{suburb_2_yield_fmt}} and {{suburb_3_yield_fmt}} respectively. Both share the same fundamentals: entry prices well below the Sydney median, combined with established commuter rail or motorway links into the CBD and major employment precincts at Parramatta, Macquarie Park or the western Sydney logistics belt. {{suburb_4_name}} and {{suburb_5_name}} continue the theme at the {{suburb_4_yield_fmt}} mark, coastal or fringe suburbs where the housing stock is detached and family-oriented, and where the rental pool draws from local workers, hospital staff and tradespeople rather than CBD professionals.

The short-term rental column is worth reading alongside the long-term rental yield rather than in isolation. New South Wales caps non-hosted short-term rentals in Greater Sydney at 180 nights per year, which compresses the achievable holiday-let revenue ceiling. For most of the top-yielding suburbs in this ranking, long-term rental is the more straightforward strategy because tenant demand is local and year-round; coastal pockets like {{suburb_4_name}} are where short-term rental can compete, but only inside the legal night cap.

The Yield-Price Trade-Off: Buying at {{suburb_1_price_fmt}} Versus {{sale_price_fmt}}

The inverse relationship between price and yield is the defining feature of the Sydney market. Cheaper suburbs yield more because rents do not fall as fast as prices when you move outwards from the harbour. A 3-bed house in {{suburb_1_name}} at {{suburb_1_price_fmt}} commands roughly {{suburb_1_rent_weekly_fmt}} a week, not far behind what the same property type achieves in suburbs costing two or three times as much. Premium inner suburbs trade in the opposite direction: buyers pay for amenity, schooling, harbour proximity and long-run capital growth, not for income. The rental income simply cannot keep pace with the land value those locations carry.

An investor entering at {{suburb_1_price_fmt}} in {{suburb_1_name}} versus {{sale_price_fmt}} at the city median faces a very different capital-risk profile. The lower entry point reduces deposit requirements, stamp duty, and the absolute dollar exposure to a downturn. It also narrows the cashflow gap between rent and mortgage interest, which matters in a high-rate environment. Sydney's median sale price sits {{sale_price_pct_vs_national_abs_fmt}} {{sale_price_vs_national}} the national median; buying at the top end is a bet that capital growth will do most of the work.

For Context: Sydney's Most In-Demand Premium Suburbs

For context, here is how some of Sydney's most in-demand suburbs compare. These are established suburbs where investors typically accept lower yields in exchange for capital growth, liquidity and the certainty of broad tenant demand.

High-demand suburbs for context. Same methodology as the yield ranking above.

These suburbs yield less on long-term rental because buyers are paying for the things that do not show up in a rental yield calculation: harbour or beach proximity, school catchments, walkability, established gentrification, and historical capital growth. Short-term rental does not change the picture for most of these locations, because the 180-night cap on non-hosted lettings in Greater Sydney prevents an investor from running them at full-year occupancy. The premium-suburb thesis in Sydney has always been growth-led rather than income-led.

What the Ranking Doesn't Show: Capital Growth, Vacancy, and Data Lag

A high yield is not automatically a good outcome. Yield is rent divided by price, and a high number can signal depressed prices as easily as strong rents. Premium suburbs with weak yields have historically delivered the bulk of Sydney's total return through capital growth: an investor in {{premium_1_name}} who bought a decade ago has likely outperformed an investor in {{suburb_1_name}} on total return, even though the income story pointed the other way at purchase. The trade-off between yield and growth is the central decision in Sydney investment, not a side issue.

Other limitations apply to any ranked table. Some high-yield outer suburbs have thinner rental pools, which means longer void periods between tenancies and more sensitivity to a single major employer leaving. Medians can also lag in fast-moving suburbs, a suburb that gentrified in the last twelve months may show a yield based on prices that are already six months old, with rents that have not yet caught up. Use the ranking as a directional tool, then verify the specific suburb's vacancy rate, recent sales velocity, and tenant demographic before committing.

View Sydney in the dashboard → Free preview · every bedroom count and property type

Negative Gearing and Depreciation Tilt the After-Tax Picture

Australian investors should read the gross yield numbers above through an after-tax lens, because the tax treatment can shift the comparison. Negative gearing allows rental property losses, where mortgage interest plus deductible costs exceed rental income, to be offset against salary or wage income, reducing taxable income. In a market like Sydney, where entry prices are high relative to rents, many long-term rental properties run at a cash loss in the early years, which creates a tax deduction that scales with the investor's marginal rate.

The benefit is not free money, since it requires a genuine cash loss, but the offset is substantial. A $25,000 rental loss saves around $11,250 in tax at the 45% marginal rate (income above $190,000), around $7,500 at the 30% bracket, and around $9,250 at the 37% bracket. Both short-term rental and long-term rental can be negatively geared if costs and interest exceed gross income; whichever strategy produces the loss qualifies for the salary offset, and which one that is depends on the specific gross rent, financing and costs.

Capital works deductions may apply at up to {{gross_yield_str_fmt}} per year on eligible construction expenditure, depending on building age, construction history, and a quantity surveyor's depreciation schedule. Fixtures and fittings, air conditioning, carpets, appliances, may add further deductions. The 50% capital gains tax discount also applies to properties held longer than twelve months, equally for short-term and long-term rental. The dashboard calculates your after-tax position including negative gearing and depreciation based on your income, enter your salary to see how the tax treatment changes the comparison for your tax bracket.

How Sydney's Yield Range Compares to NSW and Australia

Sydney's city-median gross yield of {{gross_yield_ltr_fmt}} sits {{yield_gap_state_pp_abs_fmt}} {{yield_vs_state}} the New South Wales median of {{state_avg_yield_fmt}}, and {{yield_gap_national_pp_abs_fmt}} {{yield_vs_national}} the national median of {{national_avg_yield_fmt}}. The top-yielding suburbs in this ranking, {{suburb_1_name}} at {{suburb_1_yield_fmt}}, beat the national median, while the premium inner pockets trail it considerably. The investment case in Sydney is therefore best framed as a choice between two distinct propositions: outer suburbs that compete on income with the national average, or premium inner suburbs that rely on Sydney's long-run appreciation track record to justify the income gap.

Data reflects market conditions as of {{data_date}}. See market score methodology and data sources for how these figures are calculated. Explore rental data in the dashboard for suburb-level detail.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.