Comprehensive analysis of rental yields in Willoughby, comparing units vs houses, street-by-street performance, and seasonal trends.
Willoughby's rental market delivers strong yields for North Shore investors, with median gross yields of 3.2% for houses and 4.1% for units. The suburb's proximity to Chatswood CBD, excellent schools, and established infrastructure attract high-quality tenants including professionals, families, and executives.
Units consistently outperform houses in gross yield terms due to lower entry prices ($850K median vs $1.95M), while houses offer superior capital growth and tenant stability. Two-bedroom units near Willoughby Station achieve yields up to 4.5%, making them ideal for cash-flow focused investors.
| Property Type | Median Price | Weekly Rent | Gross Yield | Tenant Type |
|---|---|---|---|---|
| 2-bed unit | $850,000 | $650 | 4.0% | Young professionals |
| 3-bed unit | $1.1M | $750 | 3.5% | Small families |
| 3-bed house | $1.95M | $1,200 | 3.2% | Families with children |
| 4-bed house | $2.4M | $1,400 | 3.0% | Executive families |
Streets within 600m of Willoughby Station command rental premiums of 12-18% due to commuter appeal. The Willoughby Road commercial strip supports mixed-use buildings with ground-floor retail achieving 4.8% yields. Older unit blocks (1970s-1980s) in High Street offer renovation opportunities with post-upgrade yields reaching 4.6%.
Willoughby attracts 68% professional tenants (finance, consulting, tech) earning median household incomes of $145K+. School catchment zones (Willoughby Girls High, Northbridge Public) drive family demand from March-December. Corporate relocations to Chatswood and North Sydney create consistent executive rental demand, with 89% of tenants renewing 12-month leases.
Peak rental demand occurs January-February (new year relocations) and October-November (spring market). Rents increase 4-7% during these periods. Winter months (June-August) see 2-3% softening but vacancy rates remain below 2.5%. School term timing heavily influences family rental decisions, creating predictable demand cycles.
Investors can boost yields through: furnished rentals (+8-12% rent premium for executives), dual-occupancy feasibility (R2 zoning permits), cosmetic renovations ($30K spend = $50/week rent increase), solar panel installation ($80/quarter utility saving shared with tenant), and professional property management (vacancy reduction from 3 weeks to 10 days).
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Willoughby delivers median gross rental yields of 3.2% p.a. for houses and 4.1% p.a. for units. Two-bedroom units near Willoughby Station can achieve yields up to 4.5%, while larger houses typically yield 3.0-3.2%. The suburb's low 1.8% vacancy rate ensures consistent rental income for investors.
Units outperform houses in rental yield terms (4.1% vs 3.2%) due to lower entry prices starting from $850K. However, houses priced around $1.95M offer superior long-term capital growth and attract more stable family tenants with higher renewal rates. Choose units for cash flow, houses for capital appreciation.
Properties within 600m of Willoughby Station command 12-18% rental premiums. High Street older unit blocks (1970s-1980s) offer renovation opportunities with post-upgrade yields reaching 4.6%. Mixed-use buildings along Willoughby Road near the commercial strip achieve yields up to 4.8% when ground-floor retail is included.
Willoughby attracts 68% professional tenants from finance, consulting, and tech sectors with median household incomes of $145K+. School catchment zones drive strong family demand, with 89% of tenants renewing 12-month leases. Corporate relocations to Chatswood and North Sydney create consistent executive rental demand year-round.
Key yield optimization strategies include: offering furnished rentals for 8-12% rent premiums, cosmetic renovations ($30K investment = $50/week rent increase), installing solar panels for $80/quarter utility savings, considering dual-occupancy development under R2 zoning, and hiring professional property management to reduce vacancy from 3 weeks to 10 days.
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