Rental conditions across Sydney’s Lower North Shore remain challenging, with demand continuing to outstrip supply.
According to SQM Research, the region’s vacancy rate was just 1.2% in September 2025, highlighting the intense competition for homes and apartments in Cremorne, Cremorne Point, Mosman, Neutral Bay and The Spit. While this is slightly above the record lows seen earlier in the year, available rentals are still scarce and being leased quickly.
Asking rents in the Lower North Shore
Rents across the Lower North Shore are high compared with Sydney overall, reflecting the area’s desirability and limited housing supply.
According to Domain’s rental report for the September 2025 quarter, houses command the clearest premium. In Mosman, houses rent for around $2,075 per week, up 7.8% year-on-year, while Cremorne sits at $1,300, up 0.4%, and Neutral Bay at $1,210, up 0.8%. By comparison, the average house rent across Sydney is $780 per week, up 1.3%. This reflects the Lower North Shore’s proximity to the city, harbourside lifestyle, excellent schools and limited supply of family-sized homes.
The unit market is slightly more accessible, though still competitive. Apartments in Mosman rent for around $790 per week, up 8.2% year-on-year, Cremorne $800, up 5.3%, and Neutral Bay $750, up 4.2%, broadly in line with Sydney’s unit average of $750 per week, up 4.9%.
Despite being more affordable than houses, these sharper year-on-year increases show how tight the unit rental market has become, with strong demand continuing to push rents higher.
What does a tight rental market mean for buyers?
If you’re considering buying a home in the Lower North Shore, current rental conditions make purchasing an appealing alternative. With low vacancy rates and rising rents, securing a lease is increasingly difficult – and expensive. Owning a property not only secures your lifestyle but also helps you avoid ongoing rent increases and build equity over time.
Houses in areas such as Mosman, Cremorne and Neutral Bay remain highly sought after. They offer more space, access to excellent schools and long-term capital growth potential, making them ideal for families or those planning to stay long term.
That said, while houses continue to command a premium, units offer a more accessible entry point into the market. For instance, according to Domain, the median house price in Cremorne is over $2.9 million, compared to $1.3 million for a unit. In Neutral Bay, median unit prices sit just over $1 million, while houses are close to $2.5 million.
Buying an apartment lets you tap into the Lower North Shore’s long-term growth potential, while avoiding the uncertainty and intense competition of the rental market.
In a competitive environment like this, purchasing offers a way to take control of your housing costs and secure a home in one of Sydney’s most desirable areas—whether you’re after a house or an apartment.
Ready to find your home in the Lower North Shore? Whether you’re looking for a spacious house or a convenient apartment, R&W Mosman/Neutral Bay can help you navigate this competitive market. Get in touch today to explore available properties and secure your ideal home before rents rise further.