Tempe
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
$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). 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
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
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Data sourced from multiple sources. Last updated 15 April 2026.