The 15 Best Suburbs to Invest in Sydney in 2020

This Blog is going to be a little different from my other blogs.

Purely because I write this blog with a level of hesitation.

SydneyAnd the reason I have a level of hesitation is that whenever I see a blog written with the title “Top Hotspots for 2020” or “Property Investment Hotspots” it usually makes me cringe.

So let me preface by saying… this is NOT one of those blogs.

You see, being a property strategist means that you must approach every client’s position not only strategically but individually.

Every client has unique circumstances, goals and aspirations and there is never a blanket approach to investing.

Furthermore, I do not believe in hotspots or investing in an area just because it is expected to be the “Next Best Thing”.

“Hot-spots” tend to be “not-spots” and I’m a long-term investor, meaning I take calculated risks, I do not gamble.

Therefore, providing a macro strategy about the Top Sydney suburbs for 2020 is not as easy as it sounds.

So, let’s approach this with the following expectations:

  1. coronovirus property market australia
    The suburbs I have featured have all been strong and stable suburbs that have both shown consistent historical growth but also have the right demographics to suggest future long term growth.
  2. The suburbs I feature are all located within the inner-middle rings of Sydney so that we can avoid any hot spotting or speculative investing. These are all proven investment grade suburbs.
  3. Yes, there are some suburbs outside of this list that have shown higher short term growth but the suburbs listed are long term performers based on a number of metrics intended for safe and long term growth not a short term and risky “get rich quick” approach.
  4. Every client I see may be provided with a different recommendation based on their circumstances and personal goals.

Now that all that is out of the way… let’s get into it.

This list will serve as a very useful guide for investing in Sydney in 2020 – for long term growth as an experienced investor.

This list will also help you avoid making any costly mistakes.

Now that I think of it, I feel like I am giving away quite a bit of intellectual property with this list however if it adds value than I have achieved my goal.

Each suburb featured below:

  • Is within 15km of the CBD
  • Exceeds the Australian median household income of $1164.60, suggesting they all have above average household and disposable income.
  • Has a DSR Score (Demand Supply Ratio) of Good or Above Average
  • Has a population in excess of 6500
  • Is ‘Very Walkable’ with a Walk Score of 70+

Please see below list of 15 Investment Grade Sydney suburbs

They are in no particular order however I have provided a ranking based on a number of metrics towards the end of the blog.

1. Coogee

Coogee

Coogee is a gentrified coastal suburb South-East of Sydney CBD which will see the benefits of infrastructure projects over 2020.

The South-East Light Rail project, is a $2.2B project and will see a 12km light rail network connect Circular Quay to Kingsford.

In addition to the light rail a $5M upgrade of the Coogee Bay Road town centre commenced in September 2018.

  • Distance from CBD: 8km South East
  • Total population: 14,012
  • Median Household Income: $2099 (weekly)
  • Walk Score: 79 – Very Walkable

2. Kingsford

Kingsford

Kingsford is a residential suburb, South East of Sydney CBD and situated directly south of the University of New South Wales.

It has cultural amenities along Anzac Parade and Gardners Road and is less than 5 km from Coogee Beach.

Kingsford will also benefit from the South-East light rail project with a direct connection to the CBD.

  • Distance from CBD: 7km South East
  • Total population: 14,100
  • Median Household Income: $1227(weekly)
  • Walk Score: 82 – Very Walkable

3. Kensington

Kensington

Kensington is located South-East of Sydney CBD in the local government area of the City Of Randwick.

Kensington lies to the immediate south of Moore Park and west of Randwick Racecourse.

The principal landmarks of the suburb are the main campus of the University of New South Wales, National Institute of Dramatic Arts (NIDA) and the exclusive Australia Golf Club.

Kensington will also benefit from the South-east light rail project.

  • Distance from CBD: 6km South East
  • Total population:  12,776
  • Median Household Income: $1498(weekly)
  • Walk Score: 81 – Very Walkable

4. Maroubra

Maroubra
Maroubra is a beachside suburb in the Eastern Suburbs of Sydney and located South-East of Sydney CBD.

Maroubra is the largest suburb in the area governed by Randwick City Council in both area and population.

  • Distance from CBD: 10km South East
  • Total population: 29,594
  • Median Household Income: $1428(weekly)
  • Walk Score: 74 – Very Walkable

5. Neutral Bay

Neutral Bay

Neutral Bay is a harbourside suburb on the Lower North Shore of Sydney.

It is north of Sydney CBD in the local government area of North Sydney Council.

Surrounding suburbs include Cammeray, Milsons Point and Cremorne.

  • Distance from CBD: 1.5km North
  • Total population: 9384
  • Median Household Income: $2073(weekly)
  • Walk Score: 85 – Very Walkable

6. Cammeray

Cammeray

Cammeray is a suburb on the lower North Shore of Sydney and located North of Sydney CBD.

The majority of residences are in the form of stand-alone or semi-detached, single or double-storey houses.

Many of the quieter streets are lined with trees and have nature stips.

This gives Cammeray a pleasant green look.

  • Distance from CBD: 5km North
  • Total population: 6783
  • Median Household Income: $2239(weekly)
  • Walk Score: 85 – Very Walkable

7. Balmain

Balmain

Balmain is an affluent neighbourhood west of Sydney CBD with a trendy restaurant scene.

Relaxed pubs and cafes occupy Victorian buildings on Darling Street, alongside boutique stores, artisan bakeries and happening eateries.

Well-heeled families, artists and media figures reside in the restored sandstone workers’ cottages lining the leafy streets and stalls at Saturday’s Balmain Markets sell organic food, crafts and fashion.

  • Distance from CBD: 5km West
  • Total population: 9783
  • Median Household Income: $2456(weekly)
  • Walk Score: 93 – Walkers Paradise

8. Rozelle

Rozelle

Rozelle is a gentrified residential suburb in the inner-west of Sydney CBD.

Strong in cultural amenities with cafes and restaurants along Darling Street, it is a destination suburb due to its boutique stores and eateries.

  • Distance from CBD: 4km West
  • Total population: 7919
  • Median Household Income: $2598(weekly)
  • Walk Score: 84 – Very Walkable

9. Dulwich Hill

Dulwich Hill

Dulwich Hill is a suburb in the Inner West of Sydney it is located south-west of the Sydney CBD.

Dulwich Hill stretches south to the shore of the Cooks River and is an established residential area with many examples of federation Architecture.

The streets are wider than many inner-city suburbs and houses are bigger than some older, neighbouring suburbs such as Petersham.

  • Distance from CBD: 7.5km South-West
  • Total population: 12,981
  • Median Household Income: $1540(weekly)
  • Walk Score: 84 – Very Walkable

10. Summer Hill

Summer Hill

Summer Hill is a residential suburb located west of Sydney CBD with surrounding suburbs being Lewisham, Haberfield and Ashfield.

Summer Hill has a mix of Federation-era houses, with medium density apartment blocks near the railway station.

The local council has defined a village character for the suburb.

Summer Hill is a suburb rich in heritage with more than one hundred properties being heritage listed.

  • Distance from CBD: 7km West
  • Total population: 6586
  • Median Household Income: $1570(weekly)
  • Walk Score: 77 – Very Walkable

11. Marrickville

Marrickville

Marrickville is a gentrified suburb in the Inner West of Sydney and located south-west of the Sydney CBD.

It is the largest suburb in the inner-west and sits on the northern bank of the Cooks River.

It is a diverse suburb consisting of both low and medium density residential, commercial and light industrial areas.

Many Marrickville homes are detached or terraced Victorian houses built in the late 19th century while many others were built in the Federation style in the early 20th century.

  • Distance from CBD: 7km South-West
  • Total population: 24,612
  • Median Household Income: $2324(weekly)
  • Walk Score: 80 – Very Walkable

12. Ashfield

Ashfield

Ashfield is a suburb in the Inner West of Sydney and located south-west of Sydney CBD is relatively high for Australia, with the majority of the area’s dwellings being a mixture of mainly post-war low-rise apartments and federation-era detached houses.

Amongst these are a number of grand Victorian buildings that offer a hint of Ashfield’s rich cultural heritage.

  • Distance from CBD: 8km South-West
  • Total population: 22,190
  • Median Household Income: $1314(weekly)
  • Walk Score: 75 – Very Walkable

13. Newtown

Newtown

Newtown is a diverse, bohemian neighbourhood that bustles with activity day and night.

Shoppers head to King Street’s indie bookshops and thrift stores.

Hip bars and eateries with multicultural fare cater to locals and University of Sydney students and The Enmore Theatre hosts comedy revues and live music.

Restored Victorian buildings and street art, including a mural of Martin Luther King, round out the scene.

  • Distance from CBD: 4km South-West
  • Total population: 14,148
  • Median Household Income: $1753(weekly)
  • Walk Score: 95 – Walkers Paradise

14. Kogarah

Kogarah

Kogarah is a residential suburb of southern Sydney located south of the Sydney CBD and is considered to be the centre of the St George area.

Kogarah’s main shopping area is located around Kogarah railway station on Railway Parade, Regent Street and on the opposite side of the railway line on Station Street.

  • Distance from CBD: 14km South
  • Total population: 12,763
  • Median Household Income: $1238(weekly)
  • Walk Score: 84 – Very Walkable

15. Bexley

Bexley

Bexley is a suburb in southern Sydney located south of the Sydney CBD in the local government area of the Bayside Council and is part of the St George area.

Bexley contains a mixture of residential, commercial and light industrial developments and its main shopping strip (usually known as the ‘Bexley Shopping Centre’) is located on Forest Road.

  • Distance from CBD: 14km South
  • Total population: 19,067
  • Median Household Income: $1358(weekly)
  • Walk Score: 71 – Very Walkable

Suburbs ranked based on Distance from CBD

Suburb Distance from CBD
1 Neutral Bay 1.5km
2 Rozelle 4km
2 Newtown 4km
3 Balmain 5km
3 Cammeray 5km
4 Kensington 6km
5 Kingsford 7km
5 Summer Hill 7km
5 Marrickville 7km
6 Dulwich Hill 7.5km
7 Coogee 8km
7 Ashfield 8km
8 Maroubra 10km
8 Kogarah 14km
9 Bexley 14km

Suburbs ranked based on Walk Score

Suburb Walk Score
1 Newtown 95
2 Balmain 93
3 Neutral Bay 85
3 Cammeray 85
4 Rozelle 84
4 Dulwich Hill 84
4 Kogarah 84
5 Kensington 81
6 Marrickville 80
7 Coogee 79
7 Kingsford 79
8 Summer Hill 77
9 Ashfield 75
10 Maroubra 74
11 Bexley 71

Important to note that location accounts for 80% of the properties performance and 20% comes from the property itself.

Meaning that with correct location and property selection you can find an investment grade asset that well and truly outperforms the averages in growth.

If you would like assistance in finding an investment grade asset in Sydney that outperforms the averages in growth, please do not hesitate to reach out to the independent team at Metropole for an obligation free chat.

If you’re looking at buying your next home or investment property here’s 4 ways we can help you:

Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.

Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
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Brett Warren

About

Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: www.brisbanebuyersagent.com.au


'The 15 Best Suburbs to Invest in Sydney in 2020' have 2 comments

    Avatar

    March 22, 2020 Michae A

    These suburbs are great for investment if you have a 20% deposit.
    For the majority of readers of this article is a dream that will never happen as it is intended on the RICH only given the choice of suburbs presented.
    Would like to see some suburbs that people could actually afford as investments.

    Reply

      Michael Yardney

      March 22, 2020 Michael Yardney

      Michael I can understand what you say, and clearly Sydney is not a property market that everyone should be investing in.

      At Metropole when we decide where to recommend our clients invest, there are three things we take into account.
      1. Their budget and that is usually determined by the banks.
      2. Location and we are not prepared to compromise on that
      3. The right property in that location

      If you can’t afford to buy an investment great suburb in Sydney, then you maybe better off buying in Brisbane – stick to the big capital cities rather than regional locations or secondary suburbs in the big capital cities.

      Reply


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