The Hottest Suburbs to Invest in Sydney in 2021
The Sydney property market continues to experience strong growth. Here are some of the best suburbs to invest in 2021.
Despite gloomy COVID-19 predictions, the Sydney property market has seen significant growth over the past year, with a strong forecast projected for 2021-22. In fact, ANZ has anticipated a record-breaking year in Australia’s property market soaring 17% in 2021.
When looking for a suburb to invest in, there are a number of factors to keep in mind. For example, proximity and accessibility to the CBD, whether or not it has a good DSR (Demand to Supply Ratio) and if there are good amenities in the area? If you are looking to invest in the Sydney property market, here are 10 suburbs tipped for growth.
Petersham
Inner West Petersham has become a hotspot for those in the housing market. House prices have grown more than 27%, thanks to its close proximity to the CBD and excellent community amenities. It boasts an average rental yield of 2.3% for houses and 3.1% for units and a medium house price sitting at $1,672,500.
Cronulla
The beachside suburb of Cronulla continues to see property values rise, and vacancy rates slashed. This is an excellent neighbourhood for those wanting a seaside lifestyle without the price tag of the eastern suburbs. Investors have enjoyed capital gains of 17.8% over the last 12 months, with an average rental yield of 1.9% for houses and 3.2% for units. Investors can still nab an apartment for a median price of $860,000.
Maroubra
Maroubra continues to be a popular suburb for families seeking a relaxed lifestyle and great amenities, and attracts buyers priced out of the neighbouring suburbs of Coogee and Clovelly. Investors have seen gains of 15.6% over the past 12 months with a 2.18% rental yield for houses and 3.26% for apartments.
Rouse Hill
A transformation is taking place in Rouse Hill, located in Sydney’s Hills District. Investors have seen median house prices increase by 13.2%, topping the million mark at $1,007,500. Young families are drawn to the suburb’s village-like town centre, clean air and greater value for money. The rental yield is seeing a steady climb at 3.2%.
Narrabeen
With the flexible work-from-home trend, Sydney’s Northern Beaches have seen substantial growth over the past year, with many professionals seeking a better work-life balance. Suburbs such as Narrabeen and Collaroy present great investment opportunities with an average rental yield of more than 2% for houses and 3% for apartments.
Ashfield
The booming suburb of Ashfield has seen the median house price increase to $1,550,000 and $700,000 for units, with an average annual growth of 8.5%. The suburb is praised for its rich cultural heritage and excellent community facilities. It’s just 8km from the CBD, and well connected via public transport.
Thirroul
The sea-change neighbourhood of Thirroul has seen monumental investment demand as a result of more flexible working conditions off the back of COVID-19. It is an easy one-hour commute from Sydney and just 13km north of Wollongong. As more and more Sydneysiders make the move, the coastal suburb has experienced a capital gain of 18% for the past year, with the median house price sitting at $1,370,000.
Windsor
The picturesque commuter suburb of Windsor sits just over an hour by train from the CBD. It has seen significant improvements in local infrastructure and is sought-out for its laidback lifestyle and country charm. The median house price sits at an affordable $696,250, giving first-time investors the opportunity to cash in on this up-and-coming neighbourhood.
Bexley
According to Domain, Bexley has seen a massive 32% growth rate for houses since 2020. The suburb is well connected to the CBD, inner-west and eastern suburbs. Bexley has a strong five-year compound growth rate of 2.4% for houses; but that being said, does not perfect as well for apartments.
Bardwell Park
In Bardwell Park, medium house prices grew from $1,160,000 to $1,350,000 during 2020, with a capital gain of 22% for the past year. Its popularity has been largely thanks to its proximity to WestConnex, CBD, inner-west and eastern suburbs. Prices here are projected to rise throughout the year, reflecting significant gains for investors.
*All statistics sourced from Core Logic, Realestate.com.au and Domain.
Doing your research on the best suburbs to invest in Sydney and looking for more helpful property advice? Head straight to your friend in property, The Sitch. From Home Design advice and Home Tour inspo, to property advice, we've got you covered.
