All Suburbs

Erskineville

NSW 2043LGA: City of Sydney

Investment Score

78

/100

AI Intelligence Summary

Erskineville is a vibrant inner-city suburb located just 4km south of Sydney's CBD, offering an exceptional urban lifestyle with a distinct village atmosphere. This compact neighbourhood of approximately 4,200 residents has transformed from its industrial working-class roots into one of Sydney's most desirable postcodes, particularly popular with young professionals, creatives, and downsizers seeking proximity to the city without sacrificing community character. The suburb's excellent walkability score of 85 reflects its pedestrian-friendly streets, lined with heritage terraces, converted warehouses, and contemporary apartment developments. The area is anchored by the beloved Erskineville Village shopping precinct along Erskineville Road, featuring boutique cafes, independent retailers, craft breweries, and the iconic Imperial Hotel. With median house prices at $1,580,000 and units at $820,000, Erskineville sits at the premium end of the market, justified by its location and lifestyle credentials. The median household income of $95,000 indicates a predominantly professional demographic attracted to inner-city living. From an investment perspective, Erskineville presents compelling fundamentals with an investment score of 78 and impressive growth score of 82, suggesting strong capital appreciation potential. The 3.2% rental yield is modest but typical for premium inner-city locations where capital growth drives returns. The exceptionally low vacancy rate of 1.8% demonstrates consistent rental demand, supported by the suburb's proximity to major employment hubs including the CBD, Sydney University, and the expanding Green Square precinct. Transport connectivity is excellent via Erskineville and nearby Redfern stations on the T2 and T3 lines, with the CBD accessible in under 10 minutes. The safety score of 7.0 and schools rating of 6.0 indicate reasonable amenity, though families with school-age children may look to neighbouring suburbs for more educational options. The area's gentrification continues steadily, with ongoing urban renewal projects and infrastructure improvements supporting long-term value appreciation. Erskineville appeals primarily to investors seeking capital growth in a tightly-held inner-city market and owner-occupiers valuing lifestyle, convenience, and community character over space.

Strengths

  • Exceptional location just 4km from Sydney CBD with excellent public transport connectivity and 85 walkability score
  • Strong capital growth potential evidenced by 82 growth score in a tightly-held, gentrifying inner-city market
  • Very low vacancy rate of 1.8% indicating consistent rental demand from young professionals and city workers
  • Vibrant village atmosphere with thriving cafe culture, boutique retail, and strong community identity

Opportunities

  • Ongoing gentrification and urban renewal projects in surrounding areas likely to drive continued value appreciation
  • Strong demand from downsizers and young professionals seeking low-maintenance inner-city lifestyle properties
  • Potential for value-add renovations in older terrace stock and conversion opportunities in heritage buildings

Considerations

  • High entry prices ($1.58M houses, $820K units) limiting affordability and investor accessibility for first-time buyers
  • Modest rental yield of 3.2% requiring long-term capital growth strategy rather than immediate cash flow returns
  • Limited family appeal with schools rating of 6.0 and smaller property sizes typical of dense inner-city development

Property Market

Median House

$1.58M

+8.2% 1yr

Median Unit

$820K

+6.8% 1yr

Median Townhouse

$1.15M

Rent (House)

$950/wk

Rent (Unit)

$650/wk

Days on Market

28

Vacancy Rate

1.8%

Auction Clearance

78.0%

Price Growth

Type1 Year3 Year5 Year
House+8.2%+22.5%+45.8%
Unit+6.8%+18.2%+38.5%

Rental Yields

House Yield

3.2%

Unit Yield

4.1%

Townhouse Yield

3.6%

Investment Scorecard

Overall Investment Score78/100
Growth Potential82/100
Cashflow Score72/100
Risk Score (lower = safer)72/100
Affordability Index45/100

Demand/Supply Ratio: 1.80

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Erskineville at median house price

Standard transfer
$69,290
First Home Buyer
$69,290
Foreign buyer surcharge
$126,400

+8% surcharge

Annual rent income
$49,400

$950/wk

Interest (80% LVR @ 6.5%)
-$82,160
Other expenses (~2.5%)
-$39,500
Net rental position
-$72,260

Negatively geared

Tax benefit (39% MTR)
+$28,181

Reduces taxable income

After-tax holding cost
$44,079/yr

~$848/week

Based on 9.2% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$2.45M
Capital gain
$791,731
After discount
$395,865
CGT payable
$154,387

10-Year Hold

Est. value
$3.80M
Capital gain
$2.14M
After discount
$1.07M
CGT payable
$417,010

Investor Quick Summary

Entry cost (stamp duty)

$69,290

After-tax yield

1.95%

Weekly holding cost

$848/wk

10yr CGT (est.)

$417,010

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). This calculator provides estimates for illustrative purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation. Tax laws, interest rates, and market conditions change frequently. Always consult a qualified professional — such as a CPA, mortgage broker, or financial adviser — before making financial decisions. Ding Group provides integrated advisory through Local Knowledge (CPA), Ding Financial (Mortgage Brokerage), and Ding Real Estate (Licensed Agency).

Demographics

Population

4,200

Median Age

34

Median Income

$95K

per annum

Family Households

38.0%

Professionals

52.0%

University Educated

48.0%

Unemployment

3.8%

Born Overseas

42.0%

Dwelling Mix

Houses: 65%Units: 28%Townhouses: 7%Total: 1,850

Lifestyle & Community

Walkability85/100
Public Transport9/10
Schools Rating6/10
Safety7/10
Family Friendly6/10
Cafes & Restaurants

25

Parks

4

Hospitals

2

Distance to CBD

4.0 km

Nearest Station: Erskineville Station

Urban lifestyle with excellent café culture, arts venues, easy access to entertainment precincts, and strong community events. Close proximity to Sydney Park provides recreational opportunities.

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Data sourced from multiple sources. Last updated 15 April 2026.

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