2023 is the perfect time to invest in the Sydney property market. Prices have dropped significantly over the past few years, and once they reach the bottom, they’ll only be able to go up. Rental demand is also at an all-time high, so one of the best ways to earn a sizeable passive income is to buy and tenant a property in a suburb with low vacancy rates and high rental demand. However, with so many suburbs in Sydney, it’s difficult to know exactly where to put your money – that’s where we come in.
We’ve compiled primary data for each suburb based on statistics from the most recent ABS survey and real estate market information. We’ve also outlined an overview of each neighbourhood to give you an overview of each suburb’s best features and why you should invest there.
Please note that property prices and other numerical data are subject to change over time. Hence, it’s essential to conduct your own research into these matters (or work with a buyer’s agent that specialises in investment property purchases) before making any significant investment decisions.
Here are some vital statistics and factors you should consider when choosing a suburb to invest in:
Distance from the CBD and transport — Suburbs closer to the CBD are in higher demand. Sydney dwellers want access to the city’s key attractions, amenities, and resources. Also, consider the access to public transport.
Average property prices — Don’t punch above your weight. Be realistic and browse properties within your budget so you can repay loans and make returns sooner.
Population and population density — Determining the suburb’s population will give you an idea of the competition and demand you’ll face (and benefit from).
Median weekly rent — ABS census data provides a median weekly rent statistic that combines houses and apartments, so this is a more general statistic. The Sydney rental market has also become more volatile, and demand has grown dramatically since the last survey. If you’re looking to earn rental yields from your investment property, it’s a good idea to check for yourself what houses and apartments are going for rent in different suburbs. By doing this, you can calculate how much you can earn from tenanting your property.
Curb appeal — While they say you shouldn’t judge a book by its cover, that’s precisely what part of looking for a property is. Curb appeal is the surface-level value of a suburb or property and considers the architecture, design aesthetic, overall attractiveness, and apparent quality of life.
1. Paddington — a terrace-house dream
- Distance from CBD: 3 km east
- Median house price: $3 million (REA, February 2022 – January 2023)
- Median unit price: $825,000 (REA, February 2022 – January 2023)
- Population: 12,701 (ABS, 2021)
- Median weekly household income: $3,131 (ABS, 2021)
- Median weekly rent: $650 (ABS, 2021)
- Attractions: Oxford Street, Victoria Barracks, Centennial Park
- Curb appeal: Historical terraces, leafy streets, charming cafes, and restaurants
Paddington is one of Sydney’s most sought-after suburbs, renowned for its stunning heritage-listed terraces, tree-lined streets, trendy shops, and quality restaurants. The weekly rent in Paddington is above Sydney’s average, so property investors can easily earn money through high rental yields.
Paddington has a rich and long history, and its renovated and restored terrace houses are highly sought-after by homebuyers and investors. Its thriving shops and cafes, relaxed atmosphere, and proximity to the city make Paddington an excellent choice for families and professionals. Though the median house price of $3 million may seem steep, Paddington is well worth investing in due to its high potential and excellent track record of growth.
2. Surry Hills — a bustling centre
- Distance from CBD: 2 km south
- Median house price: $1.7 million (REA, February 2022 – January 2023)
- Median unit price: $897,500 (REA, February 2022 – January 2023)
- Population: 15,828 (ABS, 2021)
- Median weekly household income: $2,308 (ABS, 2021)
- Median weekly rent: $550 (ABS, 2021)
- Attractions: Prince Alfred Park, Belvoir Street Theatre, Chinatown
- Curb appeal: Buzzing cafes and restaurants, terrace houses, street art
A convenient inner-city suburb with easy access to the CBD and Oxford Street, Surry Hills is known for its excellent cafes and restaurants. It’s also a cultural centre full of awe-inspiring street art, trendy bars, and a thriving creative industry.
Surry Hills contains modern apartment buildings, converted terrace houses, and boutique stores. High rental demand and rising property prices make it the perfect time to invest in Surry Hills. Consider investing in a unit, as Surry Hills is very popular for its apartment buildings and has a low vacancy rate.
3. Darlinghurst — an inner-city hub
- Distance from CBD: 2 km east
- Median house price: $2.2 million (REA, February 2022 – January 2023)
- Median unit price: $1.1 million (REA, February 2022 – January 2023)
- Population: 10,615 (ABS, 2021)
- Median weekly household income: $2,279 (ABS, 2021)
- Median weekly rent: $550 (ABS, 2021)
- Attractions: Oxford Street, Australian Museum
- Curb appeal: Heritage-listed terrace houses, trendy cafes, and bars
Darlinghurst is known for its lively nightlife, charming cafes, and traditional terrace houses dating back to the Victorian era. Located only 2 kilometres east of the CBD, Darlinghurst is an ideal inner-city location that attracts people from all walks of life.
Some of Sydney’s most well-known bars, cafes, and nightclubs are located in Darlinghurst. It’s also home to a thriving cultural and creative scene. Darlinghurst is especially popular among renters, so it is an excellent option for investors looking to earn rental yields from a house or unit.
4. Balmain — a waterside haven
- Distance from CBD: 5 km north-west
- Median house price: $2.4 million (REA, February 2022 – January 2023)
- Median unit price: $1.3 million (REA, February 2022 – January 2023)
- Population: 10,454 (ABS, 2021)
- Median weekly household income: $3,039 (ABS, 2021)
- Median weekly rent: $625 (ABS, 2021)
- Attractions: Balmain Wharf, Balmain Markets, Dawn Fraser Baths
- Curb appeal: Sandstone cottages, boutique shops, waterfront views
Balmain is a peaceful waterfront suburb known for its sandstone cottages, relaxed lifestyle, and boutique shops. It is an excellent choice for investors who want a property near the water and close to the city. A short ferry ride from Sydney Harbour, Balmain is the perfect Sydney suburb for those working in the city.
A historic sandstone house in Balmain is a wise and tasteful choice for property investors looking for Sydney suburbs near the water. Many of Balmain’s sandstone houses date back to the mid-19th century and have been restored into highly sought-after homes. Property prices in Balmain are on an uptick, so this suburb has a high potential for capital growth. The rental rate is also above average, so property investors can earn significant returns from tenanting their property.
5. Randwick — a relaxing coastal suburb
- Distance from CBD: 6 km east
- Median house price: $3.2 million (REA, February 2022 – January 2023)
- Median unit price: $1.1 million (REA, February 2022 – January 2023)
- Population: 28,943 (ABS, 2021)
- Median weekly household income: $2,422 (ABS, 2021)
- Median weekly rent: $572 (ABS, 2021)
- Attractions: Coogee Beach, Prince of Wales Hospital, Randwick Racecourse
- Curb appeal: Victorian and Federation homes, wide tree-lined streets, local markets
Located 6 kilometres east of the CBD and just a short distance from the beach, Randwick is known for its local markets, tree-lined streets, and a mixture of Victorian and Federation architecture. Its laid-back atmosphere and convenient location help make Randwick one of the top suburbs for investors in Sydney.
With proximity to Coogee beach and local markets, Randwick is the perfect suburb for a coastal city lifestyle. While the house and unit prices are steep in 2023 at over $3 million and $1 million, respectively, Randwick is an extremely popular location with a high population and higher-than-average weekly income. Randwick is particularly popular amongst independents and young professionals, who create high rental demand.
6. Mosman — a luxurious harbourside enclave
- Distance from CBD: 8 km north-east
- Median house price: $4.7 million (REA, February 2022 – January 2023)
- Median unit price: $1.2 million (REA, February 2022 – January 2023)
- Population: 28,329 (ABS, 2021)
- Median weekly household income: $2,892 (ABS, 2021)
- Median weekly rent: $590 (ABS, 2021)
- Attractions: Taronga Zoo, Balmoral Beach, Mosman Art Gallery
- Curb appeal: Harbour views, designer shops, prestigious schools
Mosman is a prestigious harbourside suburb. While it’s a little further from the CBD than other suburbs on this list, Mosman is an exclusive suburb of luxury and beauty that makes it attractive to families and individuals with high net worth.
The median house price comes in at a grand $4.7 million, but properties in Mosman are well worth the investment. Houses and estates in Mosman are grand, spacious, and gorgeous, with stunning views of the Harbour. Mosman is also home to trendy designer shops and high-end boutiques that elevate the area’s exclusivity. If you can afford the high property prices, Mosman is an excellent and profitable suburb to invest in.
7. Neutral Bay — a charming Northern suburb
- Distance from CBD: 5 km north
- Median house price: $3 million (REA, February 2022 – January 2023)
- Median unit price: $1.2 million (REA, February 2022 – January 2023)
- Population: 10,090 (ABS, 2021)
- Median weekly household income: $2,443 (ABS, 2021)
- Median weekly rent: $550 (ABS, 2021)
- Attractions: Hayes Street Wharf, Kurraba Point Reserve, Neutral Bay Club
- Curb appeal: Art deco buildings, boutique shops, waterfront views
Neutral Bay is a charming harbourside suburb just 5 kilometres north of the city. The suburb’s main draws are the beautiful views of the Harbour and the CBD. With boutique shops, art deco buildings, and waterfront cafes, Neutral Bay has unique and convenient amenities and facilities.
With a median house price of $3 million and a median unit price of $1.2 million, Neutral Bay is a wise choice for investors with a higher budget looking for a waterside suburb near the CBD. Neutral Bay holds great value for property investors with an excellent location, charming atmosphere, and convenient transport links.
8. North Sydney — a convenient business hub
- Distance from CBD: 3 km north
- Median house price: $2.7 million (REA, February 2022 – January 2023)
- Median unit price: $1.1 million (REA, February 2022 – January 2023)
- Population: 68,950 (ABS, 2021)
- Median weekly household income: $2,524 (ABS, 2021)
- Median weekly rent: $580 (ABS, 2021)
- Attractions: Luna Park, Sydney Harbour Bridge, Blues Point Reserve
- Curb appeal: Skyscrapers, heritage-listed buildings, shopping precincts
North Sydney is a bustling business district just across the Harbour Bridge from the CBD. The suburb is distinct for its tall office buildings and shopping precincts. Near some of Sydney’s most iconic attractions, such as Lunar Park, Blues Point Reserve, and Wendy Whiteley’s Secret Garden, North Sydney is full of character and excitement.
While North Sydney has relatively high unit and house prices, it’s densely populated and in extremely high demand — this is only expected to grow. Investing in a property to rent is an excellent option as the suburb is popular among professionals and students.
9. Bondi — an iconic cultural capital
- Distance from CBD: 7 km east
- Median house price: $3.6 million (REA, February 2022 – January 2023)
- Median unit price: $1.4 million (REA, February 2022 – January 2023)
- Population: 10,411 (ABS, 2021)
- Median weekly household income: $2,546 (ABS, 2021)
- Median weekly rent: $656 (ABS, 2021)
- Attractions: Bondi Beach, Bondi Markets, Bondi Icebergs Club
- Curb appeal: Iconic beach, coastal walks, trendy cafes and bars
Bondi is an iconic beachside 7 kilometres east of Sydney’s CBD. Known for its famous beach of the same name, Bondi is home to stunning coastal walks, trendy cafes, and prosperous properties. Bondi is home to gorgeous terrace houses and renovated apartment buildings and is an excellent suburb to profit from rental returns.
The median house and unit prices may seem high at $3.6 million for houses and $1.4 million for units, but Bondi is one of the most in-demand suburbs in Sydney. An attraction to locals and tourists alike, Bondi is sought after for its stunning views, resort-like atmosphere, and excellent amenities and attractions. If you’re looking to invest in a famous Sydney suburb, Bondi is a top pick.
10. Coogee — a quintessential beachside location
- Distance from CBD: 8 km east
- Median house price: $3.6 million (REA, February 2022 – January 2023)
- Median unit price: $1.3 million (REA, February 2022 – January 2023)
- Population: 14,634 (ABS, 2021)
- Median weekly household income: $2,976 (ABS, 2021)
- Median weekly rent: $650 (ABS, 2021)
- Attractions: Coogee Beach, Wylies Baths, Dunningham Reserve
- Curb appeal: Beachside lifestyle, Art Deco apartment buildings, coastal walks.
A beachside eastern suburb 8 kilometres southeast of the CBD, Coogee is known for its coastal walks and vibrant dining scene. Residents and tourists enjoy the iconic Bondi to Coogee walk, the grand Art Deco buildings that line the streets, and the golden sands and clear waters of Coogee beach.
With a high median weekly rent of $650 and an above-average median weekly household income of almost $3,000, Coogee is a wise choice for property investors looking to tenant a house or unit successfully.
11. Glebe — a trendy inner-west suburb
- Distance from CBD: 2 km west
- Median house price: $2.2 million (REA, February 2022 – January 2023)
- Median unit price: $1.1 million (REA, February 2022 – January 2023)
- Population: 11,680 (ABS, 2021)
- Median weekly household income: $1,756 (ABS, 2021)
- Median weekly rent: $420 (ABS, 2021)
- Attractions: Glebe Markets, University of Sydney, Tramsheds
- Curb appeal: Heritage-listed terrace houses, leafy streets, trendy cafes and shops
Glebe is a diverse and trendy inner-city suburb just 2 kilometres west of the city. Its long history as a working-class suburb is evident in its iconic Victorian and Federation homes that have been transformed and restored into stylish modern residences. The suburb is also known for its artistic and cultural charm, seen in its independent bookstores, cafes, galleries, and markets. Glebe is popular among students (due to its proximity to the University of Sydney), creatives, professionals, and retirees.
The demand for affordable properties in Glebe is higher than ever, so it’s the perfect time to invest in a property in Glebe and watch it grow in value. You’ll find exceptionally high success in the rental market, with rental yields at a peak in 2023.
12. Newtown — an artistic and cultural centre
- Distance from CBD: 4 km southwest
- Median house price: $1.7 million (REA, February 2022 – January 2023)
- Median unit price: $725,000 (REA, February 2022 – January 2023)
- Population: 14,690 (ABS, 2021)
- Median weekly household income: $2,330 (ABS, 2021)
- Median weekly rent: $550 (ABS, 2021)
- Attractions: Enmore Theatre, Camperdown Memorial Rest Park, Newtown Festival
- Curb appeal: Eclectic mix of Victorian and Edwardian architecture, trendy cafes and bars, vibrant street art scene
Newtown is a vibrant inner-city suburb just 4 kilometres southwest of Sydney’s central business district. Known for its trendy shops, restaurants, and bars along King Street, Newtown is a lively and bustling community in both daylight and night hours.
With one of the city’s most affordable median unit prices (just $725,000), Newtown is an ideal choice for investors looking to earn rental yields from apartments. The house price is also significantly lower than most of the suburbs on this list, so if you’re on a tighter budget but still want to invest in a city-centric suburb in high demand, Newtown is one of the best picks.
Which suburb will you choose?
As an investor, considering more than just what’s ‘trending’ or what’s a ‘hotspot’ can elevate your chances of earning significant returns on your property investment. More importantly — choose a suburb that’s best for you, not just what people tell you is the best. Of course, it’s always useful and recommended to consult your buyer’s agent, mortgage broker, and solicitor before making a solid decision.
The Sydney suburbs we’ve recommended on this list are strong, stable, and convenient and have both shown consistent growth and are expected to grow in the future. That makes them safe and wise choices for your investment property.
It’s recommended you work with a professional when investing in property. Whether you’re looking at areas in Sydney or suburbs in Adelaide, we can help you evaluate the market, choose the best suburb, and get the best deal on your property. Consult a buyer’s agent with Aus Property Professionals to get started and earn money from your investment property.
