- House and unit prices increased strongly during 2021, as have asking prices
- The market has entered a downturn, which is expected to last until next year
- BuyersBuyers has listed the best unit suburbs in Sydney for investors
The New South Wales and the Sydney housing markets tend to lead housing market cycles.
The market has entered a downturn, one that is expected to bottom out by next year, suggests a report from leading buyers agency BuyersBuyers, noting that buyers have a potential window of opportunity to buy with relatively little competition, thus allowing to negotiate a deal.
The report noted that house and unit prices increased strongly during 2021 across both the Sydney and regional markets, with the median house price across the entire state reaching well above $1 million.
Weekly asking prices have risen strongly too.
Greater Sydney
During the year, listings remained historically low, resulting in a great deal of competition between owner occupiers and investors.
More listings are now expected to enter the market during the second half of this year.
Attached dwelling price growth has been slower throughout the pandemic, but significant price growth has been recorded in certain parcels of Sydney, such as in the Eastern Suburbs (Randwick, Bondi, Maroubra) and on the Northern Beaches (Dee Why, Narrabeen, Freshwater).
BuyersBuyers’s Doron Peleg noted that after an extraordinary two years for the Sydney market, prices are now starting to enter a more ‘normal’ period for property.
“The various sectors of the market will be segmented. We see some risks of price declines in the premium end of the market, while buying new units ‘off the plan’ may be risky given the current environment for property developers,” he said.
“The best opportunities in the unit market are set to be in the established housing market, rather than for expensive new builds.
“Look for boutique apartment blocks with a high land value content and units with a point of scarcity, such as a view.”
In light of this, BuyersBuyers has listed the best opportunities in the established unit markets, with a premium on their location. All of these suburbs are central suburbs, along with two from the Northern Beaches.
Top 10 Investment Suburbs in Sydney for Units
- Randwick – $1,204,902
- Maroubra – $1,018,000
- Narrabeen – $1,332,929
- Freshwater – $1,290,867
- Dummoyne – $1,249,934
- Dulwich Hill – $859,275
- Neutral Bay – $1,398,399
- Mosman – $1,277,051
- Surry Hills – $985,685
- Darlinghurst – $1,172,404
Randwick, 2031
Located in Sydney’s Eastern Suburbs, Randwick has 10,111 properties – the highest on this list – with a median unit price of $1.2 million. Thee are around 800 units and apartments currently for sale in the suburb, which is just six kilometres southeast of the Sydney CBD. It is known for many heritage-listed properties and borders with the University of New South Wales.
Maroubra, 2035
South of Randwick is Maroubra, 10 kilometres southeast of the Sydney CBD, which comes next on the list with a unit median price of $1.02 million. There are 6,525 properties, with 260 currently for sale. The suburb is the largest within the Randwick City Council.
Narrabeen, 2101
Narrabeen, located 23 kilometres northeast of the Sydney CBD, is a beachside suburb home to 8,207 residents. There are 2,664 properties in the Northern Beaches suburb, with a high median price of $1.33 million. It is known for being the home of a surfing beach.
Freshwater, 2096
Also in the Northern Beaches is Freshwater, 17 kilometres northeast of the Sydney CBD. It is touted as the birthplace of Australian surfing. There are 2,201 properties, with a median price of $1.29 million for units and apartments, with 177 currently for sale.
Drummoyne, 2047
Located in Sydney’s Inner West, Drummoyne, six kilometres west of the Sydney CBD, is home to 12,000 residents. Located in the City of Canada Bay, there are 3,912 properties with a unit median price of $1.25 million. There are currently 127 properties of this type for sale.
Dulwich Hill, 2203
Located nearby is Dulwich Hill, 7.5 kilometres southwest of the Sydney CBD. Stretching to the shores of the Cooks River, the suburb has a population of over 14,000, with 3,385 units, at a median of $859,275. 450 of these dwellings are currently for sale.
Neutral Bay, 2089
Located on Sydney’s Lower North Shore, just 1.5 kilometres north of the Sydney CBD, is Neutral Bay. There are 4,958 units in this suburb with a high median of $1.4 million. There are 300 properties currently for sale.
Mosman, 2088
Mosman, another well-known affluent Lower North shore suburb, makes the list. There are 8,063 units in the suburb, with a median price of $1.28 million. There are 30,000 residents and 250 units and apartments currently for sale.
Surry Hills, 2010
The inner city suburb of Surry Hills is next on this list, being just a kilometre from the Sydney CBD. A highly multicultural suburb, it borders with Haymarket and Paddington, Darlinghurst and Redfern, making it a highly central location full of restaurants, pubs and heritage buildings.
There are 7,587 units with a median of $985,685 – lower than many suburbs on this list despite its central location. There are currently 1,000 units and apartments for sale.
What about houses?
In terms of the housing market, Sydney is notorious globally for having some of the most expensive housing in the world. Only Hong Kong has more expensive real estate.
According to CoreLogic, house value increased by 19.8% to June. In light of this loans.com.au has listed the top 10 Sydney suburbs for those wishing to purchase homes, as opposed to units, which includes many suburbs in the Greater Western Sydney region.
Top 10 Investment Suburbs in Sydney for Houses
- Bardwell Park – $1,600,000
- Blacktown – $810,000
- Narrabeen – $3,500,000
- Badgerys Creek – N/A
- Windsor – $790,000
- Cherrybrook – $1,800,000
- Avalon Beach – $1,980,000
- Miranda – $1,420,000
- Mount Druitt – $744,000
- Beacon Hill – $2,300,000
Bardwell Park, 2207
Situated 12 kilometres south of the Sydney CBD, Bardwell Park offers close access to the Inner West and Eastern suburbs, along with WestConnex and Sydney Airport. The median house price has risen by $400,000 to $1.6 million, with a rental house yield of 2.3%. The suburb is popular with families and older couples, and remains in high demand with limited stock.
Blacktown, 2148
Located 34 kilometres west of Sydney, well into Greater Western Sydney, Blacktown is popular with both owner-occupiers and investors. Double-digit growth was recorded from 2013-2018, with values remaining steady even during the first year of the pandemic. The area will benefit from $5 billion worth of infrastrue this decade, and still enjoys a median house price of more than $200,000 below the Sydney average at $810,000, representing a 2.6% rental house yield.
Narrabeen, 2101
The well-known beach suburb makes an appearance on this list, noting it is perfect for those seeking a great work/life balance. Despite the high house price of $3.5 million, making the rental house yield 1.6%, the suburb remains extremely popular with professionals and families, still enjoying strong growth in recent years.
Badgerys Creek, 2555
Located 41 kilometres west of the Sydney CBD, Badgerys Creek is best known for being the home of the new $9 billion Western Sydney Airport. It appears plane noise will not make the area less valuable. Given the airport will make the area a massive hub, house prices are poised to go up significantly. However, the number of stock is so low an accurate median house price cannot be published.
Windsor, 2756
Located 50 kilometres northwest of the Sydney CBD, Windsor is one of the oldest European settlements in Australia. The suburb is becoming increasingly popular due to the working-from-home boom. If commuting is required, the train trip is around one hour. There is also strong investment in the local infrastructure. The median house price is $790,000,with a 3% rental house yield.
Cherrybrook, 2126
Located 27 kilometres northwest of the Sydney CBD, Cherrybrook has had strong capital growth in recent years with significant high-value sales. House prices are expected to increase further thanks to the Sydney Metro Northwest. Older and established families dominate the suburb, with bush views and lush lawns a common sight. The median house price is $1.8 million, above Sydney’s, with a rental house yield of 2.3%.
Avalon Beach, 2107
Avalon Beach is 37 kilometres north of the CBD, being another popular beachside suburb like Narrabeen. House prices have grown strongly during the pandemic and are set to increase further due to a new hospital and large investment in local roads. The median house price is $1.98 million, with a rental house yield of 1.97%.
Miranda, 2228
24 kilometres south of the Sydney CBD is Miranda. It is well known as a commercial centre for The Shire, but has grown in popularity with the working-from-home boom thanks to being near beaches and rivers. Population growth has been strong, too. The median house price is $1.42 million, reflecting a rental house yield of 2.7%.
Mount Druitt, 2770
Mount Druitt is located 38 kilometres west of the Sydney CBD. The suburb has been undergoing a significant transformation in recent years, with $1.5 billion worth of infrastructure approved by the Federal Government. The median house price is $774,000, with a rental house yield of 2.8%.
Beacon Hill, 2100
Located in the Northern Beaches region, Beacon Hill has seen its rental market tighten immensely thanks to the pandemic. Planned infrastructure is poised to make the commute to the CBD, 17 kilometres away, much more simpler, in conjunction with the work-from-home shift. The median house price is currently $2.3 million.
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To find out the Top 20 Best investment Suburbs for Melbourne, check out this article.
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