Australia’s most populous state boasts some of the most in-demand areas to live in on the planet. From the Northern Beaches to Sydney to the Blue Mountains, there are many property markets in NSW that will probably always have strong demand. If you’re looking for an investment property with strong cashflow, these are the towns and suburbs in NSW with among the highest rental yields.
NSW Rental Yields
According to the most recent data available at the time of writing, these are the median rental yields for units and houses across NSW, divided between metro and country zones.
| Median Price | Median Weekly Rent | Median Rental Yield | |
|---|---|---|---|
| Houses (Sydney) | $1,400,000 | $750 | 2.8% |
| Units (Sydney) | $792,000 | $680 | 4.5% |
| Houses (Rest of NSW) | $725,000 | $550 | 3.9% |
| Units (Rest of NSW) | $620,000 | $460 | 3.9% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over three months.
Rental yields in New South Wales are generally lower than the norm for Australia. As of August 2024, the average house in Sydney returned 2.8% annually in rent, lower than any other state capital. The next lowest is Melbourne at 3.3%. Both property prices and rent are higher in Sydney than anywhere else in the nation - but generally speaking, more expensive property tends to have lower rental yields.
Best Rental Yields in NSW
Most recent estimates suggest Broken Hill has the highest rental yields for houses in NSW, at an average of 9.3%. For units, Moree in central NSW takes the crown with an average yield of 6.9%.
Houses
| Rank | Suburb (Postcode) | LGA | Median Price | Median Rent | Rental Yield |
|---|---|---|---|---|---|
| 1st | Broken Hill (2880) | Broken Hill | $190,000 | $340 | 9.3% |
| 2nd | South Lismore (2480) | Lismore | $285,000 | $450 | 8.2% |
| 3rd | Peak Hill (2869) | Parkes | $202,500 | $290 | 7.4% |
| 4th | Cobar (2835) | Cobar | $225,603 | $320 | 7.4% |
| 5th | Girards Hill (2480) | Lismore | $410,000 | $550 | 7.0% |
| 6th | Boggabri (2382) | Narrabri | $315,000 | $420 | 6.9% |
| 7th | Lismore (2480) | Lismore | $410,000 | $520 | 6.6% |
| 8th | Moree (2400) | Moree Plains | $310,000 | $380 | 6.4% |
| 9th | Narrandera (2700) | Narrandera | $311,250 | $380 | 6.3% |
| 10th | South Kempsey (2440) | Kempsey | $352,500 | $430 | 6.3% |
| 11th | Adaminaby (2629) | Snowy Monaro | $485,000 | $585 | 6.3% |
| 12th | Condobolin (2877) | Lachlan | $260,000 | $310 | 6.2% |
| 13th | Holbrook (2644) | Greater Hume | $315,000 | $375 | 6.2% |
| 14th | Wellington (2820) | Dubbo | $295,000 | $350 | 6.2% |
| 15th | West Wyalong (2671) | Bland | $390,000 | $450 | 6.0% |
| 16th | Gilgandra (2827) | Gilgandra | $273,000 | $313 | 6.0% |
| 17th | Batlow (2730) | Snowy Valleys | $306,000 | $350 | 5.9% |
| 18th | Batlow (2730) | Snowy Valley | $306,000 | $350 | 5.9% |
| 19th | Quirindi (2343) | Liverpool Plains | $360,000 | $410 | 5.9% |
| 20th | Coraki (2471) | Richmond Valley | $402,500 | $450 | 5.8% |
| 21st | Finley (2713) | Berrigan | $317,000 | $350 | 5.7% |
| 22nd | Harden (2587) | Hilltops | $370,000 | $405 | 5.7% |
| 23rd | Deniliquin (2710) | Edward River | $336,250 | $368 | 5.7% |
| 24th | South Grafton (2460) | Clarence Valley | $415,000 | $450 | 5.6% |
| 25th | Buronga (2739) | Wentworth | $430,000 | $465 | 5.6% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over three months.
By a comfortable margin, the highest average rental yields for houses in New South Wales are to be found in Broken Hill. As of August 2024 the average house price in Broken Hill was just $190,000. With a median rent of $340, that puts the average rental yield at 9.3% - more than a full percentage point above South Lismore in second.
About 1,100 ks west of Sydney, Broken Hill is Australia's oldest continous mining town, sitting above one of the world's largest deposits of ore. Mining tends to be a common theme for high rental yields. Demand for temporary accommodation in mining areas is often a lot higher than demand to buy as miners come and go. Cobar in Central NSW is another mining town in the top five.
Three of the top ten suburbs are in Lismore, south-west of Byron Bay. Lismore is known to be one of the areas of Australia most prone to flooding, with the community recently devastated by the floods of 2022. Residents of North Lismore, South Lismore and the CBD have had to evacuate because of flooding in the past. This risk, along with the huge cost of insuring a property in an area with such a high flood threat, has likely contributed to lower house prices compared to surrounding suburbs. At the same time though, the area remains a major urban area in NSW, so there is still plenty of demand for homes in these areas, even if it is as a renter. This could be one of the reasons why rent is so high relative to house prices.
Units
| Rank | Suburb (Postcode) | LGA | Median Price | Median Rent | Rental Yield |
|---|---|---|---|---|---|
| 1st | Moree (2400) | Moree Plains | $221,500 | $295 | 6.9% |
| 2nd | Scone (2337) | Upper Hunter | $320,000 | $422 | 6.9% |
| 3rd | Tolland (2650) | Wagga Wagga | $236,000 | $300 | 6.6% |
| 4th | Moama (2731) | Murray River | $340,000 | $430 | 6.6% |
| 5th | Berkeley Vale (2261) | Central Coast (NSW) | $358,750 | $450 | 6.5% |
| 6th | Haymarket (2000) | Sydney | $925,000 | $1,150 | 6.5% |
| 7th | Muswellbrook (2333) | Muswellbrook | $308,750 | $380 | 6.4% |
| 8th | Mascot (2020) | Bayside (NSW) | $790,000 | $950 | 6.3% |
| 9th | Grafton (2460) | Clarence Valley | $350,000 | $415 | 6.2% |
| 10th | Wiley Park (2195) | Canterbury-Bankstown | $429,500 | $500 | 6.1% |
| 11th | Lakemba (2195) | Canterbury-Bankstown | $433,750 | $500 | 6.0% |
| 12th | Crestwood (2620) | Queanbeyan-Palerang | $363,750 | $415 | 5.9% |
| 13th | East Albury (2640) | Albury | $310,000 | $350 | 5.9% |
| 14th | South Albury (2640) | Albury | $285,000 | $320 | 5.8% |
| 15th | Googong (2620) | Queanbeyan-Palerang | $545,000 | $600 | 5.7% |
| 16th | East Lismore (2480) | Lismore | $355,000 | $390 | 5.7% |
| 17th | Lavington (2641) | Albury | $310,000 | $340 | 5.7% |
| 18th | Sydney Olympic Park (2127) | Parramatta | $675,000 | $738 | 5.7% |
| 19th | Harris Park (2150) | Parramatta | $482,000 | $525 | 5.7% |
| 20th | Guildford (2161) | Cumberland | $460,000 | $500 | 5.7% |
| 21st | Yagoona (2199) | Canterbury-Bankstown | $555,000 | $600 | 5.6% |
| 22nd | Chippendale (2008) | Sydney | $760,000 | $820 | 5.6% |
| 23rd | Dubbo (2830) | Dubbo | $335,000 | $360 | 5.6% |
| 24th | Belrose (2085) | Northern Beaches | $630,000 | $675 | 5.6% |
| 25th | Wollongbar (2477) | Ballina | $570,000 | $610 | 5.6% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over three months.
The area with the highest rental yield for units was the inland town of Moree, close to the Queensland border. Moree is an agricultural hotspot - with a Gross Regional Product of $750 million, it's one of the most productive agricultural LGAs in the nation. It's famous for crops like cereal and cotton, and also produces sheep, cattle, oil seeds, olives and pecan nuts. Landlords with units in Moree could expect rental yields around 6.9% p.a. Scone in the Hunter Region, the 'Horse Capital of Australia', takes second place.
Highest Rental Yields in Sydney
With an average yield of 5.9%, Vineyard in Hawkesbury currently has the strongest yields available in Greater Sydney for houses. For units, Berkeley Vale on the Central Coast takes the crown at 6.9%.
Suburbs in rural NSW make up the majority of the above list - capital cities tend to have more modest rental returns than property in regional areas. These are where you could expect to find the highest rental yields in the Sydney statistical division.
Houses
| Rank | Suburb (Postcode) | LGA | Median Price | Median Rent | Rental Yield |
|---|---|---|---|---|---|
| 1st | Vineyard (2765) | Hawkesbury | $727,500 | $730 | 5.2% |
| 2nd | Ebenezer (2756) | Hawkesbury | $970,000 | $900 | 4.8% |
| 3rd | Chain Valley Bay (2259) | Central Coast (NSW) | $670,000 | $580 | 4.5% |
| 4th | Glenning Valley (2261) | Central Coast (NSW) | $875,000 | $750 | 4.5% |
| 5th | Austral (2179) | Liverpool | $855,000 | $730 | 4.4% |
| 6th | Werrington (2747) | Penrith | $840,000 | $700 | 4.3% |
| 7th | Oakville (2765) | Hawkesbury | $1,204,500 | $985 | 4.3% |
| 8th | Blue Haven (2262) | Central Coast (NSW) | $727,000 | $590 | 4.2% |
| 9th | Watanobbi (2259) | Central Coast (NSW) | $725,000 | $580 | 4.2% |
| 10th | Mount Victoria (2786) | Blue Mountains | $690,000 | $550 | 4.1% |
| 11th | Mcgraths Hill (2756) | Hawkesbury | $997,100 | $775 | 4.0% |
| 12th | Koolewong (2256) | Central Coast (NSW) | $901,000 | $700 | 4.0% |
| 13th | Claymore (2559) | Campbelltown (NSW) | $947,000 | $730 | 4.0% |
| 14th | Bardia (2565) | Campbelltown (NSW) | $952,500 | $725 | 4.0% |
| 15th | Ropes Crossing (2760) | Blacktown | $922,000 | $700 | 3.9% |
| 16th | Lake Munmorah (2259) | Central Coast (NSW) | $725,000 | $550 | 3.9% |
| 17th | Woongarrah (2259) | Central Coast (NSW) | $900,000 | $675 | 3.9% |
| 18th | Jordan Springs (2747) | Penrith | $965,000 | $720 | 3.9% |
| 19th | San Remo (2262) | Central Coast (NSW) | $675,000 | $500 | 3.9% |
| 20th | Airds (2560) | Campbelltown (NSW) | $704,000 | $520 | 3.8% |
| 21st | Gwandalan (2259) | Central Coast (NSW) | $813,000 | $600 | 3.8% |
| 22nd | Wadalba (2259) | Central Coast (NSW) | $885,000 | $650 | 3.8% |
| 23rd | Halekulani (2262) | Central Coast (NSW) | $715,000 | $525 | 3.8% |
| 24th | Kanwal (2259) | Central Coast (NSW) | $750,000 | $550 | 3.8% |
| 25th | Budgewoi (2262) | Central Coast (NSW) | $712,000 | $520 | 3.8% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over three months.
Units
| Rank | Suburb (Postcode) | LGA | Median Price | Median Rent | Rental Yield |
|---|---|---|---|---|---|
| 1st | Berkeley Vale (2261) | Central Coast (NSW) | $358,750 | $450 | 6.5% |
| 2nd | Haymarket (2000) | Sydney | $925,000 | $1,150 | 6.5% |
| 3rd | Mascot (2020) | Bayside (NSW) | $790,000 | $950 | 6.3% |
| 4th | Wiley Park (2195) | Canterbury-Bankstown | $429,500 | $500 | 6.1% |
| 5th | Lakemba (2195) | Canterbury-Bankstown | $433,750 | $500 | 6.0% |
| 6th | Sydney Olympic Park (2127) | Parramatta | $675,000 | $738 | 5.7% |
| 7th | Harris Park (2150) | Parramatta | $482,000 | $525 | 5.7% |
| 8th | Guildford (2161) | Cumberland | $460,000 | $500 | 5.7% |
| 9th | Yagoona (2199) | Canterbury-Bankstown | $555,000 | $600 | 5.6% |
| 10th | Chippendale (2008) | Sydney | $760,000 | $820 | 5.6% |
| 11th | Belrose (2085) | Northern Beaches | $630,000 | $675 | 5.6% |
| 12th | Turrella (2205) | Bayside (NSW) | $739,000 | $790 | 5.6% |
| 13th | Leumeah (2560) | Campbelltown (NSW) | $447,500 | $478 | 5.5% |
| 14th | Carramar (2163) | Fairfield | $375,000 | $400 | 5.5% |
| 15th | Warwick Farm (2170) | Liverpool | $447,500 | $473 | 5.5% |
| 16th | Bankstown (2200) | Canterbury-Bankstown | $525,000 | $550 | 5.4% |
| 17th | Westmead (2145) | Parramatta | $565,000 | $590 | 5.4% |
| 18th | Villawood (2163) | Canterbury-Bankstown | $575,000 | $600 | 5.4% |
| 19th | North Rocks (2151) | Parramatta | $625,000 | $650 | 5.4% |
| 20th | Rosehill (2142) | Parramatta | $510,000 | $530 | 5.4% |
| 21st | Holroyd (2142) | Cumberland | $580,000 | $600 | 5.4% |
| 22nd | Eastgardens (2036) | Bayside (NSW) | $1,016,000 | $1,050 | 5.4% |
| 23rd | Auburn (2144) | Cumberland | $571,500 | $590 | 5.4% |
| 24th | Arncliffe (2205) | Bayside (NSW) | $730,000 | $750 | 5.3% |
| 25th | Wentworthville (2145) | Cumberland | $585,000 | $600 | 5.3% |
Source: CoreLogic. Data reported to the period ending August 2024. Median values account for sales transactions over three months.
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
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5.94% p.a. | 6.28% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | ||||||||||||
5.99% p.a. | 6.01% p.a. | $2,995 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | |||||||||||
6.04% p.a. | 5.95% p.a. | $3,011 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | |||||||||||
6.09% p.a. | 6.13% p.a. | $3,027 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $350 | 60% |
| Disclosure |
First published on March 2024
Picture by Henrique Felix on Unsplash
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