Wealth & Investment
Rental Yields in Sydney: What a Luxury Property Really Earns
Gross yield is the number brochures quote. This is what a luxury property in Sydney earns after the costs nobody prints.
99Habitat Research · 28 Aug 2026 · 6 min read
In short
Well-chosen luxury property in Sydney produces 3–4% gross. Net returns typically land one to two percentage points lower after management, service charges and vacancy.
The gross number
3–4% gross in Sydney. That is the number to start from, not the number to plan with.
Sydney is bought by Indian families around university and migration plans. Foreign nationals generally require approval and are usually limited to new dwellings.
What comes off the top
Service charges, management fees, letting commission, insurance, maintenance reserve and void periods. In prime markets these routinely absorb a fifth to a third of gross rent, and service charges on branded or amenity-heavy buildings are the most commonly underestimated line.
Tax matters too: foreign buyer stamp duty surcharge plus annual land tax surcharge
Where the demand actually is
Eastern Suburbs: Harbour and beach prime; deepest demand.
Lower North Shore: Family houses, schools.
CBD & Barangaroo: New apartments eligible for foreign purchase.
How we underwrite it
Ten months of occupancy, three years of comparable evidence, and a resale assumption of flat real pricing. If the case only works on twelve months and rising rents, it is not a case — it is a hope.
Surcharges materially change the maths. Model total cost including annual surcharges.
References
This article is general information, not investment, tax or legal advice. Rules change — confirm current requirements with qualified counsel before you transact.
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