Sydney’s Property Values reached an exponential growth rate of approx.18.2% as compared to last year besides the unexpected hit of Covid and Lockdown.
Well! This Covid Era has been upside down in everyone’s lives. But our property market suggests differently. By the end of this article, you will understand why we say this, so stay tuned and happy reading!
Now that you have decided to invest in Property and earn a cool long-term revenue from it, let us help you finalize 4 Ws – Why to invest in Sydney? Which suburbs are best considered for investment in Sydney? What checklist can you follow for smart property investment in suburbs of Sydney?
When it comes to property investment in Australia the most lucrative city to all investors is Sydney but WHY? Let’s understand.
WHY INVEST IN SYDNEY PROPERTY IN 2021?
As per the latest reports – Sydney’s initial auction clearance rate ended up at 80.2%, which was approx. 74.8% of last week’s Monday, subsequently revised down to 72.8% later last week.
Sydney has been more resilient when it comes to price drops during the Pandemic and its property prices are booming like anything. Not to forget that Sydney property’s average Capital Growth tends to increase over the years.
Yes, we are aware that the prices may rise and fall. Hence, besides this fact, we have researched a few more things that make Sydney worth investing in.
- Sydney is one of Australia’s most populated cities with a recent population growth rate of 1.7% higher than the previous FY.
- Sydney being a Migrants attraction point may reflect higher rates of the property after upliftment of lockdown as well.
- Occupants – primarily single professionals and couples without children who are willing to pay a premium to live near to their work and other adventures.
- Earlier reopening of the economy due to successful defense against the pandemic.
- Crime rate in Sydney is also very low making it one of the safest cities in World.
- Recovery of 878,000 employment loss during the lockdown.
- Slashed cash rate by the Reserve Bank Australia (RBA) leading to low-interest rates (implemented as an economic stimulant by the RBA).
- FOMO (fear of missing out) is now prevalent in those interested in Sydney real estate, but there is still plenty of growth left as Sydney property values have only just reached their previous 2017 peak levels.
- The median value of a Sydney dwelling, based on sales data for units, houses, and townhouses, is now $994,298, up 15 percent.
Now that we know a few reasons as why Sydney is a great option for property investment, let’s leap into the reason for your visit here i.e. Best Suburbs for property investment in Sydney.
BEST SUBURBS FOR PROPERTY INVESTMENT IN SYDNEY FOR 2021
We lay down a few parameters to ease your decision making such as Population/Demographics, Avg. annual growth rate, Median price, Median rent, Distance from CBD and other amenities, Land to Asset ratio etc.
These are suggestions based on our research. (By no means they shall be considered whole for your investment. Before investing in any property you must seek exclusive face to face advice from a well-experienced and expert financial advisor) Well! If we answer which suburbs are best to invest in Sydney in general terms then a property located in Inner West, Upper and Lower North Shore, City and East can be a good choice for your property investment in Sydney.
But to name a few for you and narrow down your search, we have found the following Suburbs catching the eyes of smart property investors in Sydney. This isn’t a ranking so you may consider all the parameters mentioned below for your investment purpose.
Bexley:
Bexley, located 14 km south of Sydney CBD is rich in spacious houses, has easy access to the city centre, inner west and eastern suburbs for the odd trip to the office. Bexley is the most affordable suburb in Sydney with a population of 20,987. The median sale price for houses in Bexley is $1,310,000 and $695,000 for units.The average annual growth rate for houses is 7.27% and 4.94% for units; rental yields for houses is 2.48% and for units is 3.12%. Bexley isn’t absolutely cheap but relative to other suburbs pricing it is worth considering.
[2] Fairlight:
Fairlight is a quiet suburb in Northern Beaches 13 km north to Sydney CBD with a population of 5,840. Fairlight shall be a good choice for you if you seek high annual growth. Fairlight’s average annual growth rate for houses is recorded at 8.29% and 8.75% for units. The median sale price for fairlight’s houses is $2,737,500 and $1,566,000 for units with gross rental yields of 2.11% for houses and 2.37% for units.
[3] Coogee:
Coogee is a marvelous location in Sydney – located alongside a spectacular beach and at a convenient distance from the Centennial Park, Airport and the beautiful Westfield Bondi. Coogee with the population of 9,707 is located 8km south to the Sydney CBD. Coogee’s average annual growth rate has been recorded at 7.82% for houses and 6.85% for units. The median sale price for Coogee’s houses is $3,350,000 and $1,220,000 for units with gross rental yield of 1.86% for houses and 2.77% for units. In addition to this the light rail a $5M upgrade of the Coogee Bay Road town centre commenced in September 2018.
[4] Kingsford:
Kingsford benefits from the South-East light rail project with a direct connection to the CBD. Kingsford is a mainly residential area, situated 7 km South East of Sydney CBD. In a relatively short span, Kingsford has been transformed into a speedy growing suburb. Kingsford’s average annual growth rate is last recorded at 5.78% for houses and 4.73% for units. The median sale price for Kingsfort is $2,050,000 for houses and $845,000 for units with gross rental yield of 2.03% and 2.92% for houses and units respectively.
[5] Kensington:
Kensington is best known as the home of the University of New South Wales (UNSW) and the National Institute of Dramatic Art (NIDA). Kensington’s unbeatable location has started to attract young families and professionals to the area with a current population of 15,004. Kensington’s latest average annual growth rate is 5.78% for houses and 4.73% for units with a median sale price being $2,050,000 for houses and $845,000 for units. Gross rental yields for houses and units of Kensington is reported at 2.03% and 2.92% respectively.
[6] Narrabeen:
Narrabeen is a beachside suburb perfect for those seeking a great work/life balance situated 18 km Northeast of Sydney CBD with a population of 8,207. Popular among young professionals and families, houses and units of Narrabeen saw exceptional average annual growth rates of 11.69% and 6.26%. Narrabeen’s median sale price for houses is recorded at $3,200,000 and $1,046,000 for units and gross rental yields are 1.58% and 2.98% respectively. Narrabeen is full of adventurous activities thereby attracting many tourists and migrants.
[7] Collaroy:
Apart from the wonderful ocean, Collaroy is world famous for its community culture and located 16 km Northeast of Sydney CBD. Collaroy with the population of 7,870 has recorded an average annual growth rate of 8.29% for houses and 8.29% for units. The rental yields for houses and units have been 2.19% and 3.32% respectively with the median sale price of $2,609,000 for houses and $941,000 for units. The streets are safe and neighbours are kind to each other. Combined with the parks, schools and facilities, the suburb is a very family-friendly place to live.
[8] Bardwell Park:
Bardwell Park is located 12 kilometres south of the Sydney CBD and has easy access to the Sydney airport, WestConnex, eastern suburbs and inner west. Bardwell Park is in a high demand market with a population of 2,242 and median sale price of $1,490,000 for houses. The average annual growth rate and gross rental yields for houses in Bardwell Park are 7.01% and 2.37% respectively.
[9] Cronulla:
Cronulla is a great suburb for those wanting a seaside neighbourhood, with access to a key tenant demographic for a consistent income and strong capital growth for houses. Cronulla has shown an average annual growth rate 5.78% for houses and 6.86% for units. Cronulla’s median sale prices are $2,300,000 for houses and $2,300,000 for units and gross rental yields recorded at 1.87% for houses and 2.81% for units.
[10] Marrickville:
Marrickville is a jewel in Sydney’s inner-west located 7 km closer to Sydney’s CBD, being home to people of all ages and cultural backgrounds. Marrickville’s population was recorded at 26,592. The median sale price for Marrickville’s houses and units are $1,490,000 and $750,000 respectively with the rental yields of 2.51% for houses and 3.12% for units. Marrickvell’s average annual growth rate has been reported at 7.46% for houses and 5.50% for units. Marrickville, in the city’s inner-west, took the tenth spot from 40 suburbs voted the most livable around the globe during an annual survey by Time Out magazine.
[11] Dulwich Hill:
Dulwich Hill is a suburb in the Inner West of Sydney, situated 7.5 km south-west of the Sydney CBD. Dulwich Hill has a population of 13,715. The average annual growth rate of Dulwich Hill is reported at 8.20% for houses and 4.56% for units. Dulwich Hill’s median sale price is $1,785,000 for houses and $730,000 for units with gross rental yields of 2.03% for houses and 3.13% for units. Walking distance to premier inner-west suburbs of Summer Hill and happening Marrickville, Dulwich Hill is all about prime positioning.
UNIQUE SUGGESTION
Apart from the regular property investment, you can also choose an unique option. If you are someone who seeks higher and good rental yields, then you may be interested in NDIS SDA properties as well. If you haven’t heard about it yet, no worries! You can learn more about NDIS Property Investment (NDIS – An exclusive opportunity) from our previous blog.
NDIS SDA basically provides investors 9% to 16% gross rental yield with an excellent opportunity of helping those in extreme needs. It is safe and secured as it’s a government backed investment plan. You can also check out the listings and availability of the NDIS investment property suburb or city wise. NDIS Property investment is gaining a really good momentum in the market right now with many positive responses (NDIS Property Investment Review).
CONCLUSION
These are few suburbs that have shown a better resilience and growth in Sydney. There can be some more options as well. Houses and apartments in Sydney’s eastern, inner west, and Lower North Shore suburbs offer the best prospects of long-term capital growth as this is where there are more Skill Level 1 workers – those who earn higher incomes, often having multiple sources of income.
From an investment perspective, you should strive to select an asset where the land represents 70 per cent of the value of the property, with 50 per cent as the minimum. Before you make any final decision you must do your thorough research and check out previous years’ performance of the suburbs as well to get better clarity at it.
Now! These suburbs might be a little out of budget for some investors but we promise to provide you the best options. Hence, you may wanna check out other options too with a budget friendly to you. But remember! The strategies for investment remain the same whether you invest in these or any other suburbs.
Check all the parameters wisely and then form a concrete decision. Also consider the upcoming projects in those suburbs which may in future increase their value way high.
Let us know what you think about this blog and what could have even improved this further. We always love to hear pieces of advice from our readers. If you have invested in any of these suburbs then we would like to hear your experiences as well!
