All Suburbs

Tempe

NSW 2044LGA: Inner West Council

Investment Score

78

/100

AI Intelligence Summary

Tempe is a compact, strategically positioned inner-city suburb located just 8km south of Sydney's CBD, offering an appealing blend of urban convenience and residential tranquility. With a population of approximately 4,200, this tight-knit community benefits from excellent transport connectivity, including Tempe railway station on the Airport and South Line, making it highly attractive to professionals and commuters. The suburb's exceptional walkability score of 78 reflects its pedestrian-friendly streets, proximity to local amenities, and easy access to nearby commercial hubs like Marrickville and Alexandria. The median house price of $1,450,000 and unit price of $750,000 position Tempe as a relatively accessible entry point into Sydney's inner-city market, particularly when compared to neighbouring suburbs. The area appeals to young professionals, downsizers, and investors seeking strong capital growth potential, evidenced by an impressive growth score of 82. The median household income of $85,000 suggests a diverse demographic mix, while the rental yield of 3.8% and low vacancy rate of 1.8% indicate healthy rental demand and market stability. Tempe's investment score of 78 underscores its appeal as a solid investment proposition, combining growth potential with steady rental returns. The suburb offers good educational facilities with a school rating of 6.0, and a safety score of 7.0 provides reassurance for families and residents. Lifestyle amenities include proximity to the Cooks River parklands, offering walking and cycling trails, recreational spaces, and a connection to nature within an urban setting. The area is experiencing gradual gentrification, with ongoing improvements to local infrastructure and increasing cafe culture. While Tempe lacks the retail vibrancy of some neighbouring suburbs, its proximity to major shopping precincts and entertainment districts compensates for this. The suburb's industrial heritage is gradually transforming, with warehouse conversions and modern developments adding to housing diversity. For investors, Tempe presents a compelling opportunity: strong growth fundamentals, tight vacancy rates, and proximity to employment hubs including the airport precinct and CBD make it an attractive proposition for both capital appreciation and rental income generation.

Strengths

  • Exceptional proximity to Sydney CBD (8km) with excellent public transport connectivity via Tempe station
  • Strong capital growth potential with a growth score of 82, indicating robust market momentum
  • Low vacancy rate of 1.8% demonstrating consistent rental demand and market stability
  • High walkability score of 78 with access to Cooks River parklands and recreational facilities

Opportunities

  • Ongoing urban renewal and warehouse conversions creating modern housing stock and lifestyle improvements
  • Increasing demand from airport and CBD workers seeking affordable, well-connected accommodation
  • Potential for continued gentrification as neighbouring suburbs reach price saturation, driving buyer interest to Tempe

Considerations

  • Limited local retail and dining options compared to more established inner-city suburbs
  • Proximity to industrial areas and flight paths may impact amenity for some residents
  • Smaller population base (4,200) means fewer community facilities and services within the immediate suburb

Property Market

Median House

$1.45M

+4.2% 1yr

Median Unit

$750K

+3.8% 1yr

Median Townhouse

$1.10M

Rent (House)

$1,050/wk

Rent (Unit)

$650/wk

Days on Market

28

Vacancy Rate

1.8%

Auction Clearance

72.0%

Price Growth

Type1 Year3 Year5 Year
House+4.2%+18.5%+35.2%
Unit+3.8%+16.2%+32.1%

Rental Yields

House Yield

3.8%

Unit Yield

4.5%

Townhouse Yield

4.1%

Investment Scorecard

Overall Investment Score78/100
Growth Potential82/100
Cashflow Score75/100
Risk Score (lower = safer)75/100
Affordability Index65/100

Demand/Supply Ratio: 1.80

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Tempe at median house price

Standard transfer
$62,140
First Home Buyer
$62,140
Foreign buyer surcharge
$116,000

+8% surcharge

Annual rent income
$54,600

$1050/wk

Interest (80% LVR @ 6.5%)
-$75,400
Other expenses (~2.5%)
-$36,250
Net rental position
-$57,050

Negatively geared

Tax benefit (39% MTR)
+$22,250

Reduces taxable income

After-tax holding cost
$34,801/yr

~$669/week

Based on 7.0% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$2.04M
Capital gain
$518,114
After discount
$259,057
CGT payable
$101,032

10-Year Hold

Est. value
$2.86M
Capital gain
$1.34M
After discount
$671,830
CGT payable
$262,014

Investor Quick Summary

Entry cost (stamp duty)

$62,140

After-tax yield

2.32%

Weekly holding cost

$669/wk

10yr CGT (est.)

$262,014

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

32

Median Income

$85K

per annum

Family Households

45.0%

Professionals

52.0%

University Educated

48.0%

Unemployment

4.2%

Born Overseas

42.0%

Dwelling Mix

Houses: 25%Units: 68%Townhouses: 7%Total: 1,850

Lifestyle & Community

Walkability78/100
Public Transport9/10
Schools Rating6/10
Safety7/10
Family Friendly6/10
Cafes & Restaurants

25

Parks

4

Hospitals

2

Distance to CBD

8.0 km

Nearest Station: Tempe Station

Urban convenience with excellent transport, vibrant cafe scene, recreational facilities, and proximity to universities and employment centers

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

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