The Rocks
Investment Score
82
/100
AI Intelligence Summary
The Rocks is Sydney's most historic suburb, representing the birthplace of modern Australia with its cobblestone streets and sandstone buildings. Located on Sydney Harbour's southern shore, it offers unparalleled access to the CBD, iconic harbour views, and world-class dining and cultural experiences. With a small residential population of approximately 1,300 residents, The Rocks functions as both a premium residential enclave and major tourist destination. The suburb commands some of Sydney's highest property prices due to its heritage significance, harbour location, and extreme scarcity of available housing stock. Most residences are converted heritage apartments in buildings dating from the 1800s, creating a unique living environment steeped in Australian history. The area benefits from excellent public transport connectivity through Circular Quay and walking access to the Sydney Harbour Bridge, Opera House, and CBD employment centres. Investment appeal is driven by capital growth potential and strong rental demand from both long-term tenants and short-term accommodation markets, though heritage restrictions limit development opportunities.
Strengths
- •Prime harbour location with iconic views
- •Rich heritage character and historic significance
- •Excellent public transport and CBD connectivity
- •World-class dining, entertainment and cultural amenities
Opportunities
- •Heritage building conversions and restorations
- •Short-term accommodation and tourism rental income
- •Harbour foreshore enhancement projects
- •Cultural precinct development and museum expansions
Considerations
- •Extremely limited housing stock and development opportunities
- •Heritage restrictions limiting property modifications
- •High tourist volumes affecting residential amenity
- •Limited parking and narrow street access
Property Market
$4.20M
+12.5% 1yr
$2.10M
+11.8% 1yr
$2,200/wk
$1,400/wk
35
1.8%
78.0%
Price Growth
| Type | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| House | +12.5% | +28.0% | +45.0% |
| Unit | +11.8% | +26.5% | +42.0% |
Rental Yields
House Yield
2.8%
Unit Yield
3.5%
Investment Scorecard
Demand/Supply Ratio: 2.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for The Rocks at median house price
+8% surcharge
$2200/wk
Negatively geared
Reduces taxable income
~$2,452/week
Based on 9.0% 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)
$221,850
After-tax yield
1.71%
Weekly holding cost
$2452/wk
10yr CGT (est.)
$1.07M
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
1,300
48
$145K
per annum
35.0%
68.0%
72.0%
3.2%
45.0%
Dwelling Mix
Lifestyle & Community
45
3
2
1.2 km
Nearest Station: Circular Quay
Premium urban lifestyle with harbour views, historic character, fine dining, cultural attractions, and walking access to Sydney's premier destinations including the Opera House, Harbour Bridge, and CBD.
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Data sourced from multiple sources. Last updated 29 March 2026.