Top 10 Northern Beaches Suburbs with High Rental Yields

Buying a place in the Northern Beaches suburbs is a goal for many, and for property investors, it can be a lucrative opportunity. This stunning coastal region offers high rental yields, strong tenant demand, and long-term capital growth potential, making it one of Sydney’s most desirable markets. 

With median property prices rising and with limited supply, competition can be tough. That’s where our team at Mortgage Brokers Northern Beaches comes in. Our expert brokers help investors secure the right loan suited for investment goals, access competitive rates, and simplify the lending process—saving time, stress, and money. 

Whether you’re buying a rental property or looking to expand your portfolio, our brokers can guide you every step of the way.  Let’s dive into the top 10 Northern Beaches suburbs with the strongest rental returns and explore what makes this coastal region a prime spot for property investors.

10 Northern Beaches Suburbs with High Rental Yields

With its stunning beaches, strong rental demand, and steady property price growth, the Northern Beaches is packed with investment opportunities. Let’s take a closer look at 10 suburbs offering high rental yields and what makes them stand out for savvy investors.

#1  Manly – Iconic Beachside Living with Strong Rental Demand

Manly remains a popular choice for renters, offering a perfect mix of coastal living and city convenience. With its stunning beach, vibrant nightlife, and direct ferry access to Circular Quay, it attracts professionals, families, and tourists looking for a relaxed yet well-connected lifestyle.

📌  Median house price:  $4.5 million
📌  Median unit price:  $1.6 million
📌  Rental yield for houses:  2.4%
📌  Rental yield for units:  3.9%
📌  Key Investment Benefits:

• High Airbnb potential due to short-term rental demand
• Strong demand from professionals, expats, and tourists
• Average rent for a unit: $950 per week

#2  Beacon Hill – Affordable Entry Point with Strong Yields

Beacon Hill is a residential suburb that provides a more affordable alternative to its beachside neighbours, making it an attractive option for investors. With its elevated position, leafy streets, and proximity to major employment hubs, it appeals to families and professionals seeking a balance between lifestyle and affordability.

📌  Median house price:  $1.8 million
📌  Rental yield for houses:  3.2%
📌  Key Investment Benefits:

• Close to Frenchs Forest & business hubs
• Low vacancy rates due to limited supply
• Strong infrastructure upgrades in the pipeline

#3  Dee Why – A Rental Powerhouse on the Northern Beaches

As one of the largest suburbs on the Northern Beaches, Dee Why is a thriving rental market with strong demand, particularly for units. Its beachside location, growing café scene, and excellent transport links make it a favourite among young professionals and families looking for convenience and lifestyle.

📌  Median house price:  $2.4 million
📌  Median unit price:  $950,000
📌  Rental yield for houses:  2.7%
📌  Rental yield for units:  4.1%
📌  Key Investment Benefits:

• High rental demand from young professionals
• Affordable units compared to Eastern Suburbs
• Strong growth prospects with new infrastructure projects

#4  Freshwater – Small Suburb, Big Investment Potential

Freshwater is a harbourside suburb known for its stunning beach, relaxed coastal vibe, and strong community feel, making it highly desirable for affluent buyers. With high-end homes, trendy cafés, and limited housing supply, it continues to attract lifestyle-driven renters looking for a premium Northern Beaches experience.

📌  Median house price:  $3.2 million
📌  Median unit price:  $1.2 million
📌  Rental yield for houses:  2.5%
📌  Rental yield for units:  3.7%
📌  Key Investment Benefits:

• Limited land supply keeps rental demand high
• Popular for affluent neighbourhood west of Manly
• Strong capital growth over the past five years

#5  Balgowlah – Premium Suburb with Stable Rental Yields

Balgowlah is a premium Northern Beaches suburb offering a mix of modern apartments and family homes, making it a popular choice for high-income professionals. With its proximity to Manly, excellent transport links, and strong rental demand, the suburb provides stable rental yields and long-term investment potential.

📌  Median house price:  $3.1 million
📌  Median unit price:  $1.3 million
📌  Rental yield for houses:  2.8%
📌  Rental yield for units:  3.5%

📌  Key investment benefits: 

• Premium suburb with a mix of high-end homes and modern apartments
• Stable rental yields due to strong demand from professionals and families
• Proximity to Manly offers easy access to beaches and ferry transport
• Thriving retail and dining precinct, including Stockland Balgowlah Shopping Centre

#6  Manly Vale – A Rising Star for Investors

Manly Vale is a rising star for investors, offering more affordable properties than nearby Manly while still providing strong rental demand. With great public transport access, expanding retail options, and proximity to beaches, it attracts young professionals and families seeking convenience and lifestyle.

📌  Median house price:  $2.3 million
📌  Median unit price:  $950,000
📌  Rental yield for houses:  3.0%
📌  Rental yield for units:  4.0%

📌  Key investment benefits: 

• More affordable than Manly but still close to beaches
• Strong rental demand from young professionals and families
• Excellent public transport links, including B-Line buses to the CBD
• Growing retail and dining scene, adding to tenant appeal

#7  Davidson – Family-Friendly Suburb with Strong Returns

Davidson is a family-friendly suburb known for its spacious homes, leafy streets, and top-rated schools, making it a top choice for long-term renters. With limited housing supply, strong rental demand, and easy access to Frenchs Forest’s business district, it offers steady rental yields and solid capital growth potential for investors.

📌  Median house price:  $2.2 million
📌  Rental yield for houses:  3.1%
📌  Key Investment Benefits:

• Top-rated schools attract long-term family tenants
• Leafy, peaceful environment with large block sizes
• Strong rental yields due to limited housing supply

#8  Curl Curl – A Beachside Haven with Strong Yields

Curl Curl is a highly desirable beachside suburb, offering a relaxed coastal lifestyle with stunning ocean views and strong rental demand. With limited housing supply, excellent surf beaches, and proximity to North Sydney, it continues to attract professionals and families seeking a premium Northern Beaches location.

📌  Median house price:  $3.4 million
📌  Rental yield for houses:  2.6%
📌  Key Investment Benefits:

• Stunning beachside location with strong rental appeal
• Low vacancy rates due to high demand from professionals
• Limited land supply ensures strong capital growth
• Excellent surf and outdoor lifestyle, attracting high-income renters

#9  Killarney Heights – High Rental Yields & Strong Tenant Demand

Killarney Heights is a sought-after suburb, known for its top-rated schools, family-friendly atmosphere, and bushland surroundings. With high rental demand, strong yields, and easy access to the city, it’s a prime choice for long-term investors.

📌  Median house price:  $2.5 million
📌  Rental yield for houses:  3.2%
📌  Key Investment Benefits:

• Highly sought-after school catchment area
• High median rent due to strong demand from families
• Bushland setting and quiet suburban feel

#10  Clontarf – Luxury Market with Strong Short-Term Rental Potential

Clontarf is a prestigious harbourside suburb, offering luxury homes, breathtaking water views, and direct beach access, making it highly desirable for affluent renters. With strong short-term rental demand, high-end property values, and proximity to Manly and the CBD, it’s an attractive option for investors seeking premium returns.

📌  Median house price:  $4.8 million
📌  Rental yield for houses:  2.5%
📌  Key Investment Benefits:

• Exclusive harbourside location with premium rental demand
• Strong Airbnb market for short-term rental income
• Limited housing stock ensures long-term capital growth
• Stunning water views and access to Clontarf Beach

Sources: CoreLogic, Realestate.com.au, Domain. Note that the prices given tend to fluctuate, so it’s best to consult with your real estate agent for the updated market prices.

Frequently Asked Questions (FAQs)

Is Northern Beaches a good investment?

Yes, Northern Beaches is a strong choice for property investors, thanks to its high rental demand, strong rental growth, and potential for capital growth. With stunning coastal suburbs, strong infrastructure projects, and low vacancy rates, the region continues to attract buyers looking for long-term returns.

What is the best suburb in Northern Beaches?

The best suburb in Northern Beaches depends on your investment goals—Manly offers high rental demand and short-term rental potential, while Beacon Hill and Davidson provide more affordable suburbs with stable returns. Suburbs like Dee Why and Freshwater have seen steady rental prices and annual growth rates, making them a great choice for property investors.

What suburb in NSW has the highest rental yield?

As of the current market, regional areas like Broken Hill and North Lismore offer some of NSW's highest rental yields. However, in Sydney, Dee Why and Manly Vale remain top performers, with strong weekly rents, median prices, and ongoing rental growth.

What is the vacancy rate on the Northern Beaches?

The vacancy rate on the Northern Beaches remains low, typically under 2%, reflecting the strong demand for property in this desirable region. With limited housing supply, natural beauty, and proximity to the CBD, rental properties are quickly leased, benefiting investors.

Are Northern Beaches suburbs good for first-home buyers?

While some coastal suburbs have high median prices, areas like Beacon Hill and Manly Vale provide more affordable suburbs for first-home buyers. Government incentives and property market forecasts suggest continued growth, making it a strategic area for long-term investment.

Should I invest in residential or commercial properties in Northern Beaches?

Residential investment properties in the Northern Beaches housing market typically offer consistent rental prices and strong demand. However, commercial properties in key areas like Brookvale and Manly may provide higher rental yields but come with greater market fluctuations, so the decision depends on your risk tolerance and investment strategy.

What types of home loans are available for property investors in Northern Beaches?

Property investors in Northern Beaches can access interest-only loans, fixed-rate loans, variable-rate loans, and offset accounts to manage repayments efficiently. Working with a mortgage broker can help investors find the best loan structure based on their investment goals, property market conditions, and long-term financial strategy.

Final Thoughts

Investing in Northern Beaches suburbs in 2025 offers a great opportunity to build long-term wealth, thanks to strong rental demand, steady price growth, and ongoing infrastructure upgrades. 

If you're ready to explore your options, Mortgage Brokers Northern Beaches is here to help. Our team can guide you through the process and connect you with the best home loan solutions—all with a free consultation to get you started. Call us today at 0403 316 686 or visit  Mortgage Brokers Northern Beaches to get expert advice tailored to your investment plans.