Searching for the best suburbs to invest in Sydney 2022?
In this guide we have put the latest data and expert insight into how the Sydney housing market performed in 2021together . We have also included real estate experts’ projections for how the Sydney housing market will perform in 2022 — and we’ll highlight key information on property investment Sydney best suburbs.
Let’s get started.
Best suburbs to invest in Sydney: overview
In 2021, Sydney experienced tremendous house price growth at 24+% for many of its locations, finishing strong by being the second highest in Australia’s list of strongest performing housing markets.
However, despite the city’s consistently strong performance for over four decades, it began to slow down by the end of last year. The affordability of the housing market plummeted as property values increased in almost every part of Sydney.
The city’s median house price was $1.31 million in 2021, which is 14 times the average income and the highest among all capital cities in the country. Melbourne came in second at $859,100 and Adelaide came in last at $518,690.
Updates on investment property Sydney in 2022
The highest growth suburbs in Sydney experienced a major increase in price over the past year, from 6% to 58%. While this was good news for homeowners, home hunters have had to deal with stretched affordability issues.
As of June 2022, Sydney’s median house price is at a whopping $1,543,845. Anyone would be hard pressed to find a property in Sydney suburbs that’s below one million dollars.
Auction rates at this time of the year are down to 60% from last year’s 80%. There is a seasonal reduction in auction listings due to winter hibernation, and they are likely to dip to below 600 from July’s 750.
There had been predictions earlier this year on property prices dropping throughout the rest of 2022 and into 2023. ANZ forecasts a 20% drop in Sydney prices this year, while NAB says 8.8% and Westpac at 3%.
These predictions seem to be holding up. Affluent regions like the Eastern Suburbs have had a $315,000 drop in its median house price since it peaked in June 2021.
These price dips are expected to keep the rise of demand from owner-occupiers and investors for well located and family-friendly apartments in inner growth suburbs Sydney.
It is also projected that there will be strong performance in Sydney’s larger regional locations, lifestyle locations with gardens and courtyards, and beachside suburbs.
Best suburbs in Sydney for first home buyers
Below is our list of high growth suburbs Sydney that we deem would be great options for first home buyers. They are selected based on their distance from the CBD, population density, and median house price that all indicate promising future growth suburbs Sydney investors may see as worth the bargain in a year’s time.
To know more about capital growth suburbs Sydney, it is best to talk to the region’s most trusted investment property mortgage broker.
Cogee
Cogee is a former seaside resort town and is now a sought-after gentrified coastal suburb. Located southeast of the CBD, Cogee is poised to have rising house prices due to infrastructure projects and industrial developments, i.e., the South-East Light Rail project.
Cogee is known for its crystal clear waters, beautiful coastline, and family-friendly beaches. It is 8km away from the CBD and has a total population of 14,000+. The average house price in this suburb is $3.7million with a gross rental yield of 5.83%. The unit prices average at $1.38million.
Balmain
Balmain is an affluent suburb with a big Italian population and lots of high-class attractions like Whilhemina’s, Balmain Hotel, and East Village hotel. It boasts of interesting restaurants, cafes, and boutique stores within walking distance, vibrant culture, and beautiful houses that overlook the waters. It is considered a walker’s paradise.
Located 5km from the CBD, the in-demand suburb has a house median price of $2.7million for a house and $1.29million for a standard unit. It has a gross rental yield of 1.64% for a house and 2.61% for a unit.
Cammeray
Cammeray boasts many reserves and parks and has great liveability factors like walkability, safety, open spaces, and nature strips. It is 5km from the CBD and has a total population of 7,000+ people.
The median house price in Cammeray is valued at $3.5million while the median unit price is $1.375million. Gross rental yield for a house is 1.78% and 2.23% for a unit.
Kensington
Kensington is a very walkable suburb with easy access to Bondi and Coogee beaches. It is located 6km south-east of the CBD and home to the National Institute of Dramatic Arts (NIDA), Australia Golf Club, and the main campus of the University of New South Wales.
Although real estate in Kensington is pricey, rental yields for houses and units are high due to the area being home to students and vacancy rates rarely being high.
Its median house price is $3.4million and its median unit price is $995,250. Gross rental unit for a house is 1.57% and 2.78% for a unit. Kensington has a total population of 11,570.
Bexley
Bexley is a rising star in the investment property market. Over the last 12 months, property investors in the suburb enjoyed higher-than-average capital gains of 35%.
It is 14km south of the CBD and close to Southern Sydney beaches. Its ethnically diverse population totals at 28,534. The median house price in Bexley sits at $1.73million and has a 1.9% rental yield. This is great news for investors, especially considering a quarter of Bexley’s population are renters.
Real estate here is relatively cheaper than other similar suburbs.
Avalon Beach
Avalon Beach is a popular suburb for its beach-friendly lifestyle and options for remote or flexible work arrangements. It was largely unaffected by the pandemic and has seen a compound growth rate of 26.4% for houses and 23.8% for units based on five years of sales.
Located 37km north of the CBD, Avalon Beach makes for a great investment property due to its being a favourite destination among holidaymakers from the capital. Its median house price is $3,185,00 and its median unit price is $1.3million. Rental yield for a house is 1.9% and 3% for a unit. Population is 11,000+.
Let Stryve help you get loans to the best suburbs for investment property Sydney
If you’re looking for the best mortgage broker in Sydney to help you break through to the Sydney property market, you’re in the right place.
Whether you’re a first home buyer, an existing homeowner, or a serious investor looking to expand their portfolio, we can help you obtain the home loan you need and get access to the best investment suburbs Sydney.
Enjoy a stress-free process knowing that our team will liaise with all stakeholders in the finance process. Call us on 1300 202 285 or click below to set an appointment.
