Where are the best suburbs to invest in Sydney's property for the balance of 2023 and 2024?
Is now the best time to get into the Sydney housing market?
Australia’s house prices reached record highs during the peak of Covid-19, with our most expensive city – Sydney – leading the pack.
And while prices have since cooled from their peak across the city, the property market continues to fetch impressive prices, particularly in some of the best investment suburbs in Sydney.
CoreLogic data shows that over the last cycle Sydney house prices:
- Rose 24.5% from the onset of COVID to their cyclical peak in January 2022
- Fell -13.8% from their peak to their cyclical trough in January 2023.
- And now have risen 7.6% since their trough earlier this year.
It’s clear that Sydney’s property market bottomed out in early 2023, and has now entered the next phase of the property market - the recovery phase.
But it’s important to remember that Sydney’s property market will continue to be fragmented as it moves further through this new phase, and therefore it’s more important than ever to pinpoint the areas that will outperform the rest.
After all, there is no ‘one’ Sydney housing market and some regions, suburbs or properties will outperform others.
For example, over the past month or two the sentiment of both Sydney property buyers and sellers has shifted, pushing up the prices of well-located A-grade homes and "family-friendly" apartments which are still in short supply.
But B-grade properties are taking longer to sell and informed buyers are avoiding C-grade properties.
But what are the best suburbs to invest in Sydney in 2023?
I’ve put together a list of the best suburbs to invest in Sydney to help guide you away from making any costly mistakes:
| Suburb | Median house price | 1-year growth | Avg. 10-year growth | Median weekly household income | Avg. monthly mortgage repayments | |
|---|---|---|---|---|---|---|
| 1 | Coogee | $3.62M | -3.40% | 4.21% | $2,145 | $3,380 |
| 2 | Kingsford | $2.34M | -9.60% | 2.51% | $1,892 | $3,000 |
| 3 | Kensington | $3.42M | 3.80% | 5.68% | $2,118 | $2,760 |
| 4 | Maroubra | $2.70M | -6.10% | 4.81% | $2,141 | $3,000 |
| 5 | Neutral Bay | $2.98M | -6.70% | 6.98% | $2,443 | $2,895 |
| 6 | Cammeray | $3.1M | -8.10% | 5.92% | $2,870 | $3,033 |
| 7 | Balmain | $2.5M | -4.00% | 6.17% | $3,309 | $3,986 |
| 8 | Rozelle | $2.16M | -5.90% | 5.39% | $3,196 | $3,500 |
| 9 | Dulwich Hill | $1.88M | -2.80% | 4.33% | $2,095 | $2,500 |
| 10 | Summer Hill | $2.12M | 3.70% | 5.90% | $2,260 | $2,708 |
| 11 | Marrickville | $1.84M | -4.60% | 5.28% | $2,170 | $2,600 |
| 12 | Ashfield | $1.80M | -4.40% | 3.44% | $1,888 | $2,210 |
| 13 | Newtown | $1.67M | -4.50% | 2.92% | $2,330 | $3,000 |
| 14 | Kogarah | $1.53M | -8.10% | 2.97% | $1,903 | $2,200 |
| 15 | Bexley | $1.50M | -6.50% | 4.21% | $1,870 | $2,351 |
Sources: ABS/Domain/REA
Each of the suburbs in this table ticks the following criteria:
- Is within 15km of the CBD
- Exceeds the Australian median household income of $40,094, or $771.03 per week, suggesting they all have an above-average household and disposable income.
- Has a DSR Score (Demand Supply Ratio) of Good or Above Average
- Has a population in excess of 6,500
- Is ‘Very Walkable’ with a Walk Score of 70+
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 then I have achieved my goal.
Note: Of course, not all properties in these suburbs will make investment-grade properties, and even within each suburb, there will still be certain locations that must be avoided and other neighbourhoods that will outperform.
But the list will serve as a very useful guide for investing in the Sydney property market as we continue through the next recovery phase of the cycle - for long-term growth as an experienced investor.
We have the data on each of Sydney’s best investment suburbs, but here’s a rundown in more detail about each of the suburbs.
1. Coogee
- Distance from CBD: 8km South East
- Total population: 14,780
- Median Household Income: $3,781 (weekly)
- Walk Score: 79 – Very Walkable
Coogee is a gentrified coastal suburb South-East of Sydney CBD which will see the benefits of infrastructure projects in the near future boost its already-high demand for property.
But the $2.2 billion South-East Light Rail project will see a 12km light rail network connect Circular Quay to Kingsford, and likely to have a substantial impact on property prices.
2. Kingsford
- Distance from CBD: 7km South East
- Total population: 13,492
- Median Household Income: $2,567 (weekly)
- Walk Score: 82 – Very Walkable
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 5km from Coogee Beach.
Kingsford will also benefit from the South-East light rail project with a direct connection to the CBD.
3. Kensington
- Distance from CBD: 6km South East
- Total population: 12,088
- Median Household Income: $2,838 (weekly)
- Walk Score: 81 – Very Walkable
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, the National Institute of Dramatic Arts (NIDA) and the exclusive Australia Golf Club.
Kensington will also benefit from the South-east light rail project.
4. Maroubra
- Distance from CBD: 10km South East
- Total population: 30,722
- Median Household Income: $2,871 (weekly)
- Walk Score: 74 – Very Walkable
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.
5. Neutral Bay
- Distance from CBD: 1.5km North
- Total population: 10,181
- Median Household Income: $3,719 (weekly)
- Walk Score: 85 – Very Walkable
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.
6. Cammeray
- Distance from CBD: 5km North
- Total population: 7,088
- Median Household Income: $4,143 (weekly)
- Walk Score: 85 – Very Walkable
Cammeray is a suburb on the Lower North Shore of Sydney and is 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.
7. Balmain
- Distance from CBD: 5km West
- Total population: 10,496
- Median Household Income: $4,624 (weekly)
- Walk Score: 93 – Walker's Paradise
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.
8. Rozelle
- Distance from CBD: 4km West
- Total population: 8,567
- Median Household Income: $4,474 (weekly)
- Walk Score: 84 – Very Walkable
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.
9. Dulwich Hill
- Distance from CBD: 7.5km South-West
- Total population: 14,021
- Median Household Income: $2,865 (weekly)
- Walk Score: 84 – Very Walkable
Dulwich Hill is a suburb in the Inner West of Sydney, located southwest 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 in many inner-city suburbs and houses are bigger than in some older, neighbouring suburbs such as Petersham.
10. Summer Hill
- Distance from CBD: 7km West
- Total population: 7,304
- Median Household Income: $3,139 (weekly)
- Walk Score: 77 – Very Walkable
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.
It has a family-friendly vibe and village atmosphere while still having proximity to Sydney CBD.
The local council has defined a village character for the suburb and Summer Hills personifies Inner West living at its finest with plenty of local eateries, world-class cafes and green spaces and parks.
Summer Hill is a suburb rich in heritage with more than one hundred properties being heritage listed.
11. Marrickville
- Distance from CBD: 7km South-West
- Total population: 35,251
- Median Household Income: $2,880 (weekly)
- Walk Score: 80 – Very Walkable
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.
12. Ashfield
- Distance from CBD: 8km South-West
- Total population: 23,091
- Median Household Income: $2,403 (weekly)
- Walk Score: 75 – Very Walkable
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.
13. Newtown
- Distance from CBD: 4km South-West
- Total population: 14,893
- Median Household Income: $3,455 (weekly)
- Walk Score: 95 – Walker's Paradise
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.
14. Kogarah
- Distance from CBD: 14km South
- Total population: 13,117
- Median Household Income: $2,315 (weekly)
- Walk Score: 84 – Very Walkable
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 the Railway Parade, Regent Street and on the opposite side of the railway line on Station Street.
15. Bexley
- Distance from CBD: 14km South
- Total population: 19,674
- Median Household Income: $2,319 (weekly)
- Walk Score: 71 – Very Walkable
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.
So what are the best places to buy property in Sydney?
As a property investor and similarly as a homeowner, it is important to note that location accounts for 80% of the heavy lifting of a property’s performance, with the property itself only accounting for the remaining 20%.
That means that with the correct location and property selection you can find an investment-grade asset that well and truly outperforms the averages in growth.
Suburbs ranked based on Distance from CBD
| Suburb | Distance from CBD |
|---|---|
| Neutral Bay | 1.5km |
| Rozelle | 4km |
| Newtown | 4km |
| Balmain | 5km |
| Cammeray | 5km |
| Kensington | 6km |
| Kingsford | 7km |
| Summer Hill | 7km |
| Marrickville | 7km |
| Dulwich Hill | 7.5km |
| Coogee | 8km |
| Ashfield | 8km |
| Maroubra | 10km |
| Kogarah | 14km |
| Bexley | 14km |
Suburbs ranked based on walk score
| Suburb | Distance from CBD |
|---|---|
| Newtown | 95 |
| Balmain | 93 |
| Neutral Bay | 85 |
| Cammeray | 85 |
| Rozelle | 84 |
| Dulwich Hill | 84 |
| Kogarah | 84 |
| Kensington | 81 |
| Marrickville | 80 |
| Coogee | 79 |
| Kingsford | 79 |
| Summer Hill | 77 |
| Ashfield | 75 |
| Maroubra | 74 |
| Bexley | 71 |
Note: There is still plenty of growth and opportunity left in the Sydney housing market.
This means as an investor, if you buy the right investment property in the right location, you could be primed to supercharge growth.
As always, not all Sydney suburbs will perform the same, and if history repeats itself some properties will increase in value significantly moving forward while others will underperform.
- Also read:The Pros and Cons of Property Investment
- Also read:How to add value to your property when selling but you’re on a budget
- Also read:The Boom and Bust of our Property Cycles: A Journey Through the Investor’s Mind
- Also read:Adelaide housing market update [video] | November 2023
- Also read:Latest property price forecasts for 2023 revealed. What’s ahead in our housing markets in the next year or two?
So this blog is going to be a little different from my other blogs.
Purely because I write this blog with a level of hesitation.
And the reason I have a level of hesitation is that whenever I see a blog written with the title “Top Hotspots for 2021” 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 I 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”.
“Hotspots” 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 best Sydney suburbs is not as easy as it sounds.
ALSO READ: Sydney property market forecast for the year ahead
