Annandale (NSW 2038) in Focus 2026: Is It a Good Investment? R-Score 87/100, 2.7% Yield & Best Streets

Market Classification: Affluent Owner-Occupier Upgrader Market · R-Score: 87/100 (National Rank #2,085 of 15,286) · Street Average: 39/100 across 61 streets.

Annandale is an established, high-income owner-occupier market where land scarcity and school/amenity appeal drive long-term capital values ($2,257,500 median). Because gross rental yields sit at 2.7%, this is not a cashflow play—it is a scarcity and land-banking market suited to high-income investors or rentvestors who prioritise street-level prestige and long-term compounding over immediate net yield.

“I’d treat the 2.7% gross yield as a warning about the holding-cost equation, not as a footnote. With an 80% LVR cash flow of negative $1,458 a week, buyers need to be very clear whether they are purchasing a particular street-quality asset or simply paying for the suburb’s reputation.”

Looking for the live, monthly-updated numbers? The Annandale (NSW) suburb profile tracks the current median house price, rent, vacancy and R-Score, and the Annandale street-by-street scores rank every street. This article is our investment analysis of what those numbers mean.

Below is our full October 2026 quantitative and street-level breakdown for Annandale (NSW 2038), combining 36 months of settled price and rental history from our Aurora research warehouse, council-level supply and employment data for Inner West (NSW), and block-by-block ABS 2021 Census SA1 tenure and yield rankings across 6,011 residential addresses.

1. Annandale (NSW) 3-Year Market Trajectory & 27-Indicator R-Score (October 2026)

Over the past 12 months, Annandale’s median house price moved +7.5% (from $2,100,000 to $2,257,500), bringing its 3-year cumulative price movement to -1.9% (from $2,302,000 three years ago). On the rental side, median weekly asking rents moved -0.8% over the past year to $1190/wk (+11.6% over 36 months), equating to a 2.7% gross rental yield. Compared with 12 months ago—when Annandale carried an R-Score of 64/100—its current composite R-Score of 87/100 represents a +23-point shift in underlying market pressure.

Indicator / R-Score Pillar	Annandale (NSW) Current	12-Month / 36-Month Context
Composite Suburb R-Score	87 / 100	Ranked #2,085 of 15,286 suburbs (was 64/100 12m ago)
Median House Price	$2,257,500	12m change: +7.5% · 36m change: -1.9%
Median Weekly Rent & Gross Yield	$1190/wk (2.7%)	12m rent change: -0.8% · 36m rent change: +11.6%
Rental Vacancy & Days on Market	2% vacancy	Median selling time: 74 days on market (1.5% vacancy is the tight-market line)
Pillar 1: Buyer Demand	32 / 100	Measures days-on-market compression, vendor discounting & sales velocity
Pillar 2: Supply & Ownership	31 / 100	Measures stock on market, building approvals vs stock & owner-occupier share
Pillar 3: Price Momentum	71 / 100	Measures short/medium-term price velocity vs Inner West & NSW
Pillar 4: Yield Pressure	56 / 100	Measures gross rental yield, rent trajectory & vacancy compression

2. The “Two-Speed Suburb” Test: Best & Worst Streets in Annandale (NSW)

Why do two 4-bedroom houses in Annandale achieve completely different bank valuations and tenant quality? Because suburb medians blend every pocket together. When we map all 6,011 addresses across 61 streets in Annandale through G-NAF to their ABS 2021 Census SA1 blocks, the suburb splits into three distinct tiers:

• Strong Street Profile (Score 75–100): 14 streets (30% of scored streets) pass both ABS Census tenure tests (owner-occupiers >65% and public housing ≤5%) plus at least one—or both—of the Annandale rent and yield benchmarks.
• Mid / Mixed Street Profile (Score 50–74): 3 streets pass the core owner-occupier and public-housing thresholds but sit below the suburb median on weekly rent or yield.
• Weaker / Caution Street Profile (Score 0–25): 29 streets fail one or both census tenure thresholds—meaning either owner-occupation sits at or below 65% or state/community public housing exceeds 5% on those specific SA1 blocks.

Top 5 Highest-Scoring Streets in Annandale (NSW)

These streets sit in SA1 census blocks with high homeowner pride of ownership, minimal social housing concentration, and strong block-level rents (inspect all 61 streets in Annandale):

Top Street in Annandale	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Rent & Yield
#1 Breillat Street	100/100	68	76%	0%	$896/wk (3.3%)
#2 Hutchinson Street	100/100	50	74%	2%	$1042/wk (3.4%)
#3 Pritchard Street	100/100	79	74%	0%	$956/wk (3.5%)
#4 Hudson Street	100/100	8	73%	3.1%	$1150/wk (3.5%)
#5 Railway Parade	100/100	48	73%	0%	$996/wk (3.6%)

Streets Where Block-Level Tenure Trails the Annandale Average

By contrast, the streets below run through SA1 census blocks that fail one or more of our tenure or rental tests. A lower Street Score is not a judgement of any individual house, but it highlights where higher renter turnover or public housing concentration exists within Annandale:

Caution Street Sample	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Median Rent
Wigram Road	6/100	45	56%	9.7%	$1039/wk
Booth Lane	13/100	12	60%	10.4%	$1033/wk
Taylor Street	16/100	145	56%	4.5%	$973/wk

3. Economic & Supply Drivers in Inner West Council (New South Wales)

Annandale sits within the Inner West Local Government Area, which has a residential population of approximately 193,125 (+5.2% population movement over the past 3 years) and 80,616 total dwellings. Three council-level fundamentals shape Annandale’s medium-term outlook:

• Local Employment Diversity (ABS Census): The largest employment sectors across Inner West are Health Care and Social Assistance (13%), Retail Trade (11%), Accommodation and Food Services (9%), Education and Training (9%). Multi-sector employment reduces reliance on any single employer or commodity cycle.
• New Building Approvals vs. Existing Stock: Over the latest 12-month financial year, Inner West approved 1% new dwelling stock (~907.323 dwellings). Because annual additions sit under 1.8% of stock, incoming supply is constrained relative to tenant and buyer demand.
• Tracked Infrastructure Pipeline: Inner West currently has $38.6 billion in tracked major infrastructure projects (placing it in the 97th percentile of Australian councils).

4. Worked Cashflow, Deposit & 80% LVR Stress-Test for Annandale (October 2026)

What does it actually cost to acquire and hold a typical house in Annandale at today’s median price of $2,257,500 and median rent of $1190/wk? Below is the baseline 80% Loan-to-Value Ratio (LVR) model we use to stress-test serviceability before shortlisting a property:

Cashflow & Capital Item	Annandale Worked Figure	Assumptions & Notes
Purchase Price (Suburb Median)	$2,257,500	Settled house median as of October 2026
20% Deposit + Est. Stamp Duty & Costs	$559,860	$451,500 deposit (80% LVR) + ~$108,360 stamp duty, legal & inspection allowance (can be funded via usable home equity)
80% LVR Loan Amount	$1,806,000	Standard no-LMI investor loan threshold
Gross Annual Rental Income	$61,880/yr ($1190/wk)	2.7% gross rental yield before vacancies and expenses
Est. Annual Interest + Operating Costs	$137,708/yr	Assumes 6.25% interest-only ($112,875/yr) + ~1.1% for council rates, insurance & property management ($24,833/yr)
Pre-Tax Weekly Cashflow Position	-$1458/wk top-up	Before tax deductions / depreciation (confirm post-tax position with your accountant)

5. Who Should Buy in Annandale—And 3 Rules Before You Make an Offer

High Land Scarcity and Deep Homeowner Wealth, But Cashflow-Intensive. Based on our October 2026 data, Annandale is best suited to higher-income professionals, medical practitioners, and upgraders with strong cashflow buffers targeting scarce land in an owner-occupier dominated suburb.

1. Never Buy Blind on the Suburb Median: In Annandale, 29 streets score below 50/100 on our census tenure and yield tests. Always run the exact street through the Annandale Street Score Hub and target the 14 streets scoring 75–100/100.
2. Check Lot-Level Overlays (Flood, Bushfire, Slope & Easements): Even on a 100/100 streetlike Breillat Street, individual lots can carry overland flow paths, steep gradients, or sewer easements that restrict granny-flat additions or spike insurance premiums.
3. Price Against Street-Matched Settled Comparables: Do not let a selling agent justify an asking price on a 25/100 street using comparable sales from a 100/100 street. Compare settled sales within the same SA1 Street Score band.