7 Best Sydney Northern Beaches Suburbs with High Rental Yields for Stronger Returns in 2026

The best Northern Beaches suburbs with high rental yields are gaining attention from savvy property buyers in Sydney, especially as the upcoming 2026 market shows signs of solid growth. The Northern Beaches economy remains robust, with steady infrastructure upgrades, increased lifestyle appeal, and rising tenant demand. 

With interest rates stabilising and a healthy rental market emerging, suburbs offering strong yield performance stand out. High rental yields often come from areas with limited housing supply, proximity to key employment zones, and lifestyle amenities that attract long-term renters. These Northern Beaches locations tend to appeal to professionals, young families, and downsizers seeking beachside convenience and connectivity.

Local brokers from Mortgage Brokers Northern Beaches can provide tailored loan support for buyers ready to tap into these high-return areas. Working with a broker ensures access to a wider range of loan options, competitive rates, and personalised strategies.

Let’s dive into the top suburbs worth watching for higher rental returns in 2026.

Key Takeaways

• Northern Beaches suburbs with high rental yields offer stronger rental income potential in 2026.
  
  
• Key factors include tenant demand, lifestyle appeal, and new infrastructure.
  
  
• Mortgage Brokers Northern Beaches can assist with expert local finance solutions.
  
  
• These areas attract professionals, families, and renters seeking convenience.
  
  
• Median rents and rental yields are forecast to remain stable or improve.
  
  

High Rental Yield Suburbs in Northern Beaches, Sydney

1. Freshwater

Freshwater offers a mix of surfside living and village charm, making it a magnet for tenants wanting the Northern Beaches lifestyle. Located just north of Manly, it blends trendy cafes, boutique shops, and a thriving beach scene. With consistent demand from young professionals and small families, the suburb enjoys strong weekly rent performance and low vacancy rates. Its proximity to the city and nearby beaches increases rental competition year-round.

• Average Rental Yield (%): 2.3% (houses); 3.5% (units)
  
  
• Weekly Median Rent: $1,700 (houses); $795 (units)
  
  
• Annual Rent Growth: 13.3% (houses); 12.04% (units)
  
  
• Rental Demand Index: High
  
  
• Median House Price: $3,825,000
  
  
• Median Unit Price: $1,280,000
  
  
• Infrastructure Development: Upgraded village centre, improved road access
  
  

2. Dee Why

Dee Why is known for its bustling esplanade, extensive public transport options, and excellent beach access. It's a hub for renters seeking coastal living with convenience. Its modern apartment blocks and family homes cater to a wide demographic. Rental returns remain competitive due to consistent tenant turnover and low supply of new dwellings.

• Average Rental Yield (%): 2.48% (houses); 4.1% (units)
  
  
• Weekly Median Rent: $780 (houses); $750 (units)
  
  
• Annual Rent Growth: 1.50% (houses); 9.0% (units)
  
  
• Rental Demand Index: Very High
  
  
• Median House Price: $2,880,000
  
  
• Median Unit Price: $1,100,000
  
  
• Infrastructure Development: Meriton precinct, public transport upgrades
  
  

3. Manly

Manly remains one of Sydney’s most iconic seaside suburbs, drawing consistent rental interest due to its ferry link to the CBD, vibrant dining scene, and world-class beaches. Its limited rental stock and sky-high desirability contribute to strong rent prices and stable occupancy. Units especially show strong yields, attracting professionals and corporate tenants.

• Average Rental Yield (%): 2.05-2.1% (houses); 2.9-3.0% (units)
  
  
• Weekly Median Rent: $1,825 (houses); $950 (units)
  
  
• Annual Rent Growth: 1.64% (houses); 6.25% (units)
  
  
• Rental Demand Index: Extremely High
  
  
• Median House Price: $4,625,000
  
  
• Median Unit Price: $1,700,000
  
  
• Infrastructure Development: Wharf upgrades, green space improvements
  
  

Looking to buy in Sydney Northern Beaches suburbs with top rental returns? Our local mortgage brokers simplify the loan application and match you with lenders who understand your investment goals. Contact 0403 316 686 or explore loan options atwww.mortgagebrokersnorthernbeaches.com.au.

4. Balgowlah

Balgowlah offers a mix of established homes and low-rise apartments within close range of beaches and shopping centres. With direct access to the city and a tight-knit community feel, it’s popular among families and downsizers. The steady tenant interest helps maintain low vacancy rates and reliable rental income.

• Average Rental Yield (%): 2.54% - 2.60% (houses);  3.2% - 3.79% (units)
  
  
• Weekly Median Rent: $1,250 - $1,650 (houses); $825 (units)
  
  
• Annual Rent Growth: 2.99% (houses); 12.76% (units)
  
  
• Rental Demand Index: High
  
  
• Median House Price: $3,450,000
  
  
• Median Unit Price: $1,380,000 - $2,280,000
  
  
• Infrastructure Development: Road widening, school upgrades
  
  

5. Fairlight

Fairlight is tucked between Balgowlah and Manly, offering panoramic harbour views and a quiet residential feel. With high-end apartment living and proximity to Manly ferry, it's a favourite among professionals and downsizers. The tight rental market keeps yields competitive despite premium property prices.

• Average Rental Yield (%): 2.11% (houses); 2.95% (units)
  
  
• Weekly Median Rent: $1,345 (houses); $1,000 (units)
  
  
• Annual Rent Growth: 4.44% (houses); 12.23% (units)
  
  
• Rental Demand Index: High
  
  
• Median House Price: $3,830,000
  
  
• Median Unit Price: $1,490,000
  
  
• Infrastructure Development: Seawall restoration, cycleway extensions
  
  

6. Frenchs Forest

Frenchs Forest is becoming a rental hotspot thanks to the Northern Beaches Hospital and its growing commercial precinct. It appeals to medical professionals and families seeking more space. Rental yields are higher due to newer housing stock and strong rent growth. Public transport links are improving, making it more appealing for long-term tenants.

• Average Rental Yield (%): 3.06% (houses); 2.82% (units)
  
  
• Weekly Median Rent: $1,250 (houses); $630 (units)
  
  
  
• Annual Rent Growth: N/A (varies from sources, both houses and units)
  
  
• Rental Demand Index: Rising
  
  
• Median House Price: $2,390,000
  
  
• Median Unit Price: N/A
  
  
• Infrastructure Development: Hospital precinct upgrades, bus rapid transit connections
  
  

7. Belrose

Belrose offers leafy surrounds, quality schools, and access to both the beaches and the bush. With larger blocks and family-sized homes, it’s attractive to long-term renters. Recent infrastructure and commercial development have improved rental demand. Though slightly inland, yields remain solid, particularly for updated family homes.

• Average Rental Yield (%): 3.10% (houses); 3.9% (units)
  
  
• Weekly Median Rent: $1,475 (houses); $695 (units)
  
  
• Annual Rent Growth: 2.13% (houses); 41.27% (units)
  
  
• Rental Demand Index: Moderate
  
  
• Median House Price: $2,224,500
  
  
• Median Unit Price: $894,500
  
  
• Infrastructure Development: Glenrose Village upgrades, road improvements
  
  

Sources: Realestate.com.au, Domain House Price, Northern Beaches Council, Infrastructure Australia. Property prices mentioned in this article are current estimates based on available data at the time of writing and are subject to change. For the latest figures, consult a licensed real estate agent or property professional.

From loan application to settlement, our mortgage experts help you finance properties in Sydney Northern Beaches' best suburbs for rental income. Let us find the right investment loan for your strategy. Call 0403 316 686 or visit www.mortgagebrokersnorthernbeaches.com.au.

FAQs

What is considered a high rental yield in Northern Beaches, Sydney?

Typically, a rental yield above 4% is considered strong in this area, especially for properties with stable tenant demand.

Which Northern Beaches suburb has the highest rental yield in 2026?

Frenchs Forest and Dee Why are showing the strongest rental yields thanks to infrastructure upgrades and renter demand.

Is it a good time to invest in Northern Beaches property?

Yes, 2026 is shaping up to be a solid year due to stable interest rates and growing rental demand.

What drives rental yield growth in these suburbs?

Key factors include location, proximity to transport, lifestyle amenities, and the quality of available housing.

Can a mortgage broker help with investment loans?

Absolutely. Brokers help find suitable lenders, competitive rates, and investment-focused loan structures.

Are units or houses better for rental yield in the Northern Beaches?

Units in areas like Manly and Dee Why often outperform due to affordability and tenant demand.

What loan options are available for buyers interested in Northern Beaches high‑rental‑yield suburbs?

Buyers can access a range of loans, including variable-rate and fixed‑rate home loans, interest‑only investment loans, and offset‑account loans designed to maximise cash flow. Lenders also offer tailored investment products for borrowers focused on strong rental returns, with some providing flexible repayment structures to suit long‑term strategies. 

Are there any government grants available for buyers investing in Northern Beaches, Sydney, high rental yield suburbs?

Yes, eligible buyers may access government grants like the First Home Owner Grant (FHOG) or stamp duty concessions, depending on their circumstances. While most grants are aimed at owner-occupiers, some incentives can still benefit investors purchasing new builds or off-the-plan properties. 

Wrapping Up

The best Northern Beaches suburbs with high rental yields continue to offer consistent growth potential, especially heading into 2026. With strong rent demand, lifestyle appeal, and ongoing infrastructure improvements, these suburbs represent sound opportunities for investors seeking higher returns. 

Partnering with Mortgage Brokers Northern Beaches can help buyers secure the most competitive financing options tailored to their needs and property goals. Whether you’re eyeing a beachside unit in Manly or a family home in Frenchs Forest, getting the right guidance early on makes all the difference.

Get in touch with our local experts via www.mortgagebrokersnorthernbeaches.com.au or call 0403 316 686 for personalised loan advice and support.