Paddington (NSW 2011) in Focus 2026: Is It a Good Investment? R-Score 80/100, 3.7% Yield & Best Streets

Market Classification: Accelerating Momentum Turnaround · R-Score: 80/100 (National Rank #3,182 of 15,286) · Street Average: 25/100 across 133 streets.

Lagging 12-month median price tables often miss the inflection point when a suburb transitions from quiet accumulation into active expansion. Over the past year, Paddington’s R-Score has climbed by +30 points to 80/100 as days on market (49 days) and rental vacancy (1.6%) tightened ahead of the broader NSW market.

“I would not let the 1.6% vacancy rate distract from the holding-cost figure. At an 80% LVR, the estimated cashflow is negative $1,212 a week, so street selection matters, but so does whether the buyer can comfortably carry a very expensive asset while waiting for the recovery to mature.”

Looking for the live, monthly-updated numbers? The Paddington (NSW) suburb profile tracks the current median house price, rent, vacancy and R-Score, and the Paddington 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 Paddington (NSW 2011), combining 36 months of settled price and rental history from our Aurora research warehouse, council-level supply and employment data for Woollahra (NSW), and block-by-block ABS 2021 Census SA1 tenure and yield rankings across 9,099 residential addresses.

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

Over the past 12 months, Paddington’s median house price moved -13.1% (from $3,050,000 to $2,650,000), bringing its 3-year cumulative price movement to +23.4% (from $2,148,000 three years ago). On the rental side, median weekly asking rents moved +18.6% over the past year to $1897/wk (+96.9% over 36 months), equating to a 3.7% gross rental yield. Compared with 12 months ago—when Paddington carried an R-Score of 50/100—its current composite R-Score of 80/100 represents a +30-point shift in underlying market pressure.

Indicator / R-Score Pillar	Paddington (NSW) Current	12-Month / 36-Month Context
Composite Suburb R-Score	80 / 100	Ranked #3,182 of 15,286 suburbs (was 50/100 12m ago)
Median House Price	$2,650,000	12m change: -13.1% · 36m change: +23.4%
Median Weekly Rent & Gross Yield	$1897/wk (3.7%)	12m rent change: +18.6% · 36m rent change: +96.9%
Rental Vacancy & Days on Market	1.6% vacancy	Median selling time: 49 days on market (1.5% vacancy is the tight-market line)
Pillar 1: Buyer Demand	45 / 100	Measures days-on-market compression, vendor discounting & sales velocity
Pillar 2: Supply & Ownership	33 / 100	Measures stock on market, building approvals vs stock & owner-occupier share
Pillar 3: Price Momentum	68 / 100	Measures short/medium-term price velocity vs Woollahra & NSW
Pillar 4: Yield Pressure	63 / 100	Measures gross rental yield, rent trajectory & vacancy compression

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

Why do two 4-bedroom houses in Paddington achieve completely different bank valuations and tenant quality? Because suburb medians blend every pocket together. When we map all 9,099 addresses across 133 streets in Paddington through G-NAF to their ABS 2021 Census SA1 blocks, the suburb splits into three distinct tiers:

• Strong Street Profile (Score 75–100): 0 streets (0% of scored streets) pass both ABS Census tenure tests (owner-occupiers >65% and public housing ≤5%) plus at least one—or both—of the Paddington rent and yield benchmarks.
• Mid / Mixed Street Profile (Score 50–74): 1 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): 100 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 Paddington (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 133 streets in Paddington):

Top Street in Paddington	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Rent & Yield
#1 Windsor Street	52/100	197	64%	0%	$1914/wk (4.7%)
#2 Hargrave Street	42/100	249	57%	0%	$1419/wk (3.6%)
#3 Paddington Street	35/100	189	60%	0%	$1682/wk (4.2%)
#4 Cascade Street	31/100	154	59%	0%	$1273/wk (2.3%)
#5 Bent Street	25/100	55	64%	0%	— (—)

Streets Where Block-Level Tenure Trails the Paddington 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 Paddington:

Caution Street Sample	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Median Rent
Vialoux Avenue	0/100	23	29%	15.5%	$823/wk
Alma Street	0/100	16	29%	15.5%	$823/wk
Lawson Street	5/100	108	35%	12.4%	$797/wk

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

Paddington sits within the Woollahra Local Government Area, which has a residential population of approximately 55,218 (+3% population movement over the past 3 years) and 26,285 total dwellings. Three council-level fundamentals shape Paddington’s medium-term outlook:

• Local Employment Diversity (ABS Census): The largest employment sectors across Woollahra are Education and Training (13%), Health Care and Social Assistance (12%), Accommodation and Food Services (11%), Retail Trade (11%). 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, Woollahra approved 0.9% new dwelling stock (~262.428 dwellings). Because annual additions sit under 1.8% of stock, incoming supply is constrained relative to tenant and buyer demand.
• State Comparison: Compare Paddington against the Top 25 Highest R-Score Suburbs in NSW.

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

What does it actually cost to acquire and hold a typical house in Paddington at today’s median price of $2,650,000 and median rent of $1897/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	Paddington Worked Figure	Assumptions & Notes
Purchase Price (Suburb Median)	$2,650,000	Settled house median as of October 2026
20% Deposit + Est. Stamp Duty & Costs	$657,200	$530,000 deposit (80% LVR) + ~$127,200 stamp duty, legal & inspection allowance (can be funded via usable home equity)
80% LVR Loan Amount	$2,120,000	Standard no-LMI investor loan threshold
Gross Annual Rental Income	$98,644/yr ($1897/wk)	3.7% gross rental yield before vacancies and expenses
Est. Annual Interest + Operating Costs	$161,650/yr	Assumes 6.25% interest-only ($132,500/yr) + ~1.1% for council rates, insurance & property management ($29,150/yr)
Pre-Tax Weekly Cashflow Position	-$1212/wk top-up	Before tax deductions / depreciation (confirm post-tax position with your accountant)

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

R-Score Jumped +30 Points Over the Past 12 Months. Based on our October 2026 data, Paddington 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 Paddington, 100 streets score below 50/100 on our census tenure and yield tests. Always run the exact street through the Paddington Street Score Hub and target the 0 streets scoring 75–100/100.
2. Check Lot-Level Overlays (Flood, Bushfire, Slope & Easements): Even on a 100/100 streetlike Windsor 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.