The Top 10 Features of the Sydney Rental Market Right Now

Sydney's rental market in 2025 continues to challenge both tenants and landlords with its ultra-competitive landscape. With vacancy rates hovering at just 1.5% according to SQM Research—well below the 2% threshold that signals a balanced market—understanding what Sydney rental features tenants truly want has never been more critical for property investors and landlords.

The Australian Bureau of Statistics reports that Sydney's population grew by 2.4% in 2023, adding over 107,500 residents by June 2024. This growth, combined with apartment delivery averaging only 12,200 properties annually against a demand for 33,000 according to CBRE, creates fierce competition for quality rental homes. As of October 2025, the national vacancy rate stands at just 1.2%, with Sydney seeing approximately 11,360 available properties—a figure that demonstrates the ongoing supply crisis.

For landlords navigating this Sydney rental market, strategic property features can mean the difference between a property sitting vacant or attracting multiple quality applications within hours.

Paul Virdi, Director of Alpha Real Property Group, observes, "In today's Sydney rental market, properties that offer a combination of lifestyle convenience and practical amenities consistently outperform. Landlords who understand tenant priorities aren't just filling vacancies faster—they're building long-term relationships with quality tenants who value what the property offers."

Let's explore the top 10 Sydney rental features commanding premium attention from tenants right now.

1. Proximity to Public Transport

Transport accessibility remains non-negotiable for Sydney tenants. Properties within walking distance of train stations, particularly those serviced by the new Sydney Metro connections, attract significantly higher application volumes. The Domain data shows that rental properties near major transport hubs lease 28% faster than the Sydney average, demonstrating how crucial this Sydney rental feature is for professionals commuting to the CBD.

2. Energy-Efficient Features

Sustainability has transitioned from a nice-to-have to a must-have Sydney rental feature. With energy costs remaining elevated, tenants actively seek properties with energy-efficient appliances, LED lighting, and proper insulation. According to NSW research, energy-efficient rental properties can command premiums of 5-10% above market rates. Over 40% of new residential developments in Sydney now incorporate built-in sustainability features, reflecting tenant demand for lower utility bills and environmental responsibility.

3. Pet-Friendly Properties

Since new NSW rental laws took effect in May 2025, pet-friendly rentals have surged in demand. With nearly 70% of Australian households owning pets according to government data, landlords who accommodate pets access a significantly wider tenant pool. Properties advertised as pet-friendly experience reduced vacancy rates and attract tenants who typically maintain longer tenancies, providing stability for landlords in the competitive Sydney rental market.

4. Dedicated Home Office Spaces

Hybrid work arrangements remain prevalent, making home office space one of the most sought-after Sydney rental features. Properties offering a dedicated workspace—whether a separate room or a well-designed nook—attract professionals willing to pay premium rents. This trend shows no signs of diminishing as flexibility in work arrangements becomes standard across industries.

5. Climate Control Systems

Sydney's temperature extremes make air conditioning and heating systems essential rather than optional. Rental properties featuring ducted or split-system air conditioning in main living areas command significantly higher interest. Tenants expect year-round comfort, and properties lacking adequate climate control face longer vacancy periods in the competitive Sydney rental market.

6. Secure Parking

Despite Sydney's public transport network, secure parking remains a highly valued Sydney rental feature. Properties offering covered, secure parking spaces attract both professionals with vehicles and families requiring additional storage. In areas where street parking proves challenging, this amenity can justify rental premiums of $50-80 per week according to market analysis.

7. Internal Laundry Facilities

Internal laundry has evolved from luxury to expectation. Properties requiring tenants to use communal facilities or visit laundromats face significant disadvantages in the Sydney rental market. According to property management data, rentals without internal laundry facilities experience 40% longer time-to-lease compared to those with in-unit washing facilities.

8. Ample Storage Solutions

Storage space consistently ranks among the top Sydney rental features tenants prioritise. Properties offering built-in wardrobes, kitchen pantries, and additional storage areas appeal to families and young professionals alike. The 2024 rental market data indicates that properties highlighting storage features receive 35% more enquiries than comparable properties without emphasising this amenity.

9. Natural Light and Modern Aesthetics

Properties featuring large windows, good natural light, and contemporary design elements attract quality tenants quickly. Modern finishes, fresh paint, and well-maintained fixtures signal to prospective tenants that the property receives proper care. This Sydney rental feature particularly appeals to young professionals and couples seeking lifestyle-oriented accommodation.

10. Outdoor Living Spaces

Balconies, courtyards, or small gardens have become increasingly valuable post-pandemic. Properties offering outdoor areas provide tenants with private spaces for relaxation and entertainment, commanding premium interest in the competitive Sydney rental market. Even modest outdoor spaces significantly enhance property appeal, particularly for inner-city apartments where outdoor access provides a genuine lifestyle advantage.

The data clearly demonstrates that Sydney rental properties combining multiple in-demand features lease faster and command higher rents. With CBRE forecasting Sydney's vacancy rate will fall further to 1.2% by 2029, landlords who invest strategically in desirable property features position themselves for sustained success in this competitive market. The average weekly rent for houses reached $900 while units averaged $650 in 2024, with premium properties featuring multiple sought-after amenities achieving above-market returns.

For tenants navigating the challenging Sydney rental market, understanding which features justify higher rents helps make informed decisions. For landlords, recognising these priorities transforms vacant properties into sought-after homes that attract and retain quality tenants in Australia's most competitive rental environment.

Disclaimer: This article provides general information only and does not constitute financial advice. Consult qualified professionals before making investment decisions.