Torquay (VIC 3220) in Focus 2026: Is It a Good Investment? R-Score 84/100, 3.7% Yield & Best Streets

Market Classification: Acute Rental Squeeze & Yield Expansion Market · R-Score: 84/100 (National Rank #2,594 of 15,286) · Street Average: 47/100 across 362 streets.

A balanced Australian rental market sits around 2.5% vacancy; Torquay is currently operating at just 1% vacancy. When rental stock is this scarce, properties lease within days, weekly asking rents ($775/wk) face sustained upward pressure, and local renters who can afford a deposit begin transitioning into first-home buyers—putting a floor under established house prices.

“I would not treat the 1% vacancy rate as permission to overpay. At an $1.1 million median and negative cashflow of $515 a week at 80% LVR, I’d compare individual streets carefully, then stress-test the holding costs before giving the rental figure too much credit.”

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

Below is our full September 2026 quantitative and street-level breakdown for Torquay (VIC 3220), combining 36 months of settled price and rental history from our Aurora research warehouse, council-level supply and employment data for Surf Coast (VIC), and block-by-block ABS 2021 Census SA1 tenure and yield rankings across 12,677 residential addresses.

1. Torquay (VIC) 3-Year Market Trajectory & 27-Indicator R-Score (September 2026)

Over the past 12 months, Torquay’s median house price moved -6% (from $1,170,000 to $1,100,000), bringing its 3-year cumulative price movement to -15.1% (from $1,296,000 three years ago). On the rental side, median weekly asking rents moved +6.2% over the past year to $775/wk (+18.2% over 36 months), equating to a 3.7% gross rental yield. Compared with 12 months ago—when Torquay carried an R-Score of 57/100—its current composite R-Score of 84/100 represents a +27-point shift in underlying market pressure.

Indicator / R-Score Pillar	Torquay (VIC) Current	12-Month / 36-Month Context
Composite Suburb R-Score	84 / 100	Ranked #2,594 of 15,286 suburbs (was 57/100 12m ago)
Median House Price	$1,100,000	12m change: -6% · 36m change: -15.1%
Median Weekly Rent & Gross Yield	$775/wk (3.7%)	12m rent change: +6.2% · 36m rent change: +18.2%
Rental Vacancy & Days on Market	1% vacancy	Median selling time: 89 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	47 / 100	Measures stock on market, building approvals vs stock & owner-occupier share
Pillar 3: Price Momentum	64 / 100	Measures short/medium-term price velocity vs Surf Coast & VIC
Pillar 4: Yield Pressure	65 / 100	Measures gross rental yield, rent trajectory & vacancy compression

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

Why do two 4-bedroom houses in Torquay achieve completely different bank valuations and tenant quality? Because suburb medians blend every pocket together. When we map all 12,677 addresses across 362 streets in Torquay through G-NAF to their ABS 2021 Census SA1 blocks, the suburb splits into three distinct tiers:

• Strong Street Profile (Score 75–100): 61 streets (20% of scored streets) pass both ABS Census tenure tests (owner-occupiers >65% and public housing ≤5%) plus at least one—or both—of the Torquay rent and yield benchmarks.
• Mid / Mixed Street Profile (Score 50–74): 191 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): 54 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 Torquay (VIC)

These streets sit in SA1 census blocks with high homeowner pride of ownership, minimal social housing concentration, and strong block-level rents (inspect all 362 streets in Torquay):

Top Street in Torquay	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Rent & Yield
#1 Golden Beach Way	100/100	60	83%	0%	$790/wk (4.2%)
#2 Liesbet Close	100/100	25	83%	0%	$790/wk (4.2%)
#3 Hani Court	100/100	17	83%	0%	$790/wk (4.2%)
#4 Fatimah Court	100/100	13	83%	0%	$790/wk (4.2%)
#5 Shah Court	100/100	8	83%	0%	$790/wk (4.2%)

Streets Where Block-Level Tenure Trails the Torquay 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 Torquay:

Caution Street Sample	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Median Rent
Grandview Road	25/100	94	65%	1.4%	$620/wk
Riverside Drive	25/100	84	65%	1.4%	$620/wk
Parkside Crescent	25/100	43	65%	1.4%	$620/wk

3. Economic & Supply Drivers in Surf Coast Council (Victoria)

Torquay sits within the Surf Coast Local Government Area, which has a residential population of approximately 40,265 (+4.3% population movement over the past 3 years) and 18,264 total dwellings. Three council-level fundamentals shape Torquay’s medium-term outlook:

• Local Employment Diversity (ABS Census): The largest employment sectors across Surf Coast are Accommodation and Food Services (16%), Retail Trade (12%), Construction (11%), Health Care and Social Assistance (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, Surf Coast approved 1.4% new dwelling stock (~273.892 dwellings). Because annual additions sit under 1.8% of stock, incoming supply is constrained relative to tenant and buyer demand.
• Tracked Infrastructure Pipeline: Surf Coast currently has $321 million in tracked major infrastructure projects (placing it in the 15th percentile of Australian councils).

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

What does it actually cost to acquire and hold a typical house in Torquay at today’s median price of $1,100,000 and median rent of $775/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	Torquay Worked Figure	Assumptions & Notes
Purchase Price (Suburb Median)	$1,100,000	Settled house median as of September 2026
20% Deposit + Est. Stamp Duty & Costs	$272,800	$220,000 deposit (80% LVR) + ~$52,800 stamp duty, legal & inspection allowance (can be funded via usable home equity)
80% LVR Loan Amount	$880,000	Standard no-LMI investor loan threshold
Gross Annual Rental Income	$40,300/yr ($775/wk)	3.7% gross rental yield before vacancies and expenses
Est. Annual Interest + Operating Costs	$67,100/yr	Assumes 6.25% interest-only ($55,000/yr) + ~1.1% for council rates, insurance & property management ($12,100/yr)
Pre-Tax Weekly Cashflow Position	-$515/wk top-up	Before tax deductions / depreciation (confirm post-tax position with your accountant)

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

Sub-1% Vacancy (1%) Is Forcing Weekly Rents and Yields Higher. Based on our September 2026 data, Torquay 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 Torquay, 54 streets score below 50/100 on our census tenure and yield tests. Always run the exact street through the Torquay Street Score Hub and target the 61 streets scoring 75–100/100.
2. Check Lot-Level Overlays (Flood, Bushfire, Slope & Easements): Even on a 100/100 streetlike Golden Beach Way, 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.