Tempe
Investment Score
78
/100
AI Intelligence Summary
Tempe is a vibrant inner-south Sydney suburb located 8km from the CBD, characterized by its diverse community of young professionals and university students. The suburb offers excellent transport connectivity via Tempe station on the T8 Airport & South Line, with the upcoming Sydenham to Bankstown Metro conversion set to enhance accessibility from 2025. The property market is dominated by apartments and units, reflecting its urban character and proximity to employment hubs. Tempe benefits from strong infrastructure including WestConnex M8 motorway access, established NBN and 5G coverage, and ongoing cycling infrastructure improvements along the Cooks River corridor. The community enjoys a strong cafe culture, access to Tempe Recreation Reserve, and proximity to major universities. While aircraft noise from nearby Sydney Airport presents some lifestyle considerations, the suburb's strategic location, infrastructure investments, and diverse amenities make it an attractive option for investors and residents seeking inner-city convenience with good growth prospects.
Strengths
- •Excellent transport connectivity with train station and upcoming Metro line
- •Strong proximity to CBD and major employment hubs
- •Diverse, educated community with high rental demand
- •Ongoing infrastructure improvements including WestConnex access
Opportunities
- •Sydenham to Bankstown Metro line opening in 2025
- •Continued urban renewal and development potential
- •Growing appeal to young professionals and students
- •Cycling infrastructure improvements enhancing connectivity
Considerations
- •Aircraft noise from Sydney Airport proximity
- •Limited local primary school options
- •Apartment-dominated market with limited housing diversity
- •Higher density living may not suit all lifestyle preferences
Property Market
$1.45M
+4.2% 1yr
$750K
+3.8% 1yr
$1.10M
$1,050/wk
$650/wk
28
1.8%
72.0%
Price Growth
| Type | 1 Year | 3 Year | 5 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
Demand/Supply Ratio: 1.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for Tempe at median house price
+8% surcharge
$1050/wk
Negatively geared
Reduces taxable income
~$669/week
Based on 7.0% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR
5-Year Hold
10-Year Hold
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). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.
Demographics
4,200
32
$85K
per annum
45.0%
52.0%
48.0%
4.2%
42.0%
Dwelling Mix
Lifestyle & Community
25
4
2
8.0 km
Nearest Station: Tempe Station
Urban convenience with excellent transport, vibrant cafe scene, recreational facilities, and proximity to universities and employment centers
Interested in Tempe?
Get a personalised buyer brief with AI-powered property intelligence for this suburb.
Data sourced from multiple sources. Last updated 29 March 2026.