- Sydney still offers plenty of investment opportunities, particularly across its more affordable unit market.
- Hotspotting Managing Director Tim Graham has identified five Greater Sydney LGAs primed for future price growth.
- Federal Budget changes make securing properties with solid rental income and good yields more important than ever.
There are still plenty of opportunities to be found in the Sydney property market for investors, particularly its unit market.
According to Hotspotting Managing Director Tim Graham, Federal Budget changes mean it is more important than ever for investors to secure properties with solid rental income and good yields.
“While Sydney remains Australia’s largest property market, detached houses across much of the city are beyond the reach of many investors,” Mr Graham said.
“Therefore, opportunities increasingly lie in locations offering affordable attached dwellings, stronger yields and access to major economic drivers.”
Mr Graham has identified five LGAs within Greater Sydney which he believes are primed for future price growth: Canterbury Bankstown, Fairfield, Central Coast, Parramatta and Liverpool.
Each location has good employment prospects, population growth, infrastructure investment and rental demand, while providing alternatives to expensive detached houses.
“Canterbury Bankstown LGA is a great example of the opportunities which exist for investors in Greater Sydney,” Mr Graham said.
“It has a large population, established transport connections and major employment, health and renewal projects. Its deep unit market offers lower entry prices, supported by tight vacancies and strong rental demand.”
“It sits in the sweet spot of Sydney’s current market. It has scale, affordability relative to many inner and middle-ring markets, strong transport connections and one of the deepest unit markets in Greater Sydney.”
Tim Graham, Hotspotting
Mr Graham said Fairfield offered a similar opportunity. Its house medians exceeded $1 million but units remained available from the low-$400,000s, with yields above 5%.
“Fairfield also has strong rental demand and its proximity to some of Western Sydney’s largest employment and infrastructure projects means that demand will continue to increase.
“Every significant unit market within the LGA achieved annual price growth, while yields range up to 5.4% in Fairfield. Vacancy rates remain tight across most of the LGA, with rents continuing to rise in many suburbs.”
The Central Coast market offered investors more affordable options, within access of both Sydney and Newcastle and a diverse mix of houses, units and lifestyle markets.
“It has become one of the most important bridge markets between Greater Sydney and Regional NSW. It offers the lifestyle appeal of a coastal region, but with direct motorway and rail connections to Sydney and Newcastle, giving it a strong commuter and migration story,” Mr Graham said.
Parramatta had strong unit turnover and attractive yields which reinforced its relevance in a cash-flow-conscious environment, while Liverpool also had many accessible unit markets.
