The Eastern Suburbs have traditionally provided solid returns for property investors.
Listed below are four suburbs we believe will continue to provide attractive returns for property investors in the future as well as now.
Vacancies are low, and rents are high right now because of fierce competition in the rental market. The sales market, on the other hand, has a lot less competition, so you are less likely to overpay and more likely to find the best property for your portfolio.
So, here are our top four picks for where to invest in Sydney’s Eastern Suburbs if you’re looking to buy an investment property.
Pick 1. Potts Point: Invest in value
Located just 15 minutes from the CBD Centre, Potts Point is one of the easiest-to-access suburbs in Sydney because of its excellent public transportation links, great cafes, bars, and restaurants. As a result, it is extremely popular among downsizers and young professionals, many of whom are tenants.
According to the 2021 Census Data, 64.1% of all dwellings in the suburb are rented, with more than half of the residents living alone.
According to realestate.com.au, the median price of one-bedroom apartments in Potts Point fell by 14.7% over the past year, making it relatively affordable for investors.
One-bedroom apartment in Potts Point
Median price: $682,500
Median rental yield: 3.4%
Pick 2. Maroubra: capitalise on two trends
Over the past decade, real estate in Sydney has seen a significant move to the beaches. The desire for more space is a trend that dominated the hot pandemic market in 2020 and 2021. Why not buy a house near the ocean to take advantage of this trend?
Maroubra’s median house price stands at $2.795 million (up from just over $1.8 million three years ago) but two-bedroom homes – or townhouses – sell for much less.
Two-bedroom house in Maroubra
Median price: $1.935 million
Median yield: 1.8%
3. Centennial Park: the undiscovered gem
Centennial Park is often associated with old-world charm and grand federation homes on leafy streets. But the beautiful estates surrounding Centennial Park are only a small part of the story. In the suburb, more than 80% of the residents live in apartments.
Furthermore, Centennial Park is as convenient as its neighbouring suburbs, but at a fraction of the price. As a result, the median apartment here sells for $855,000, compared to $1.63 million in Woollahra. Maybe that’s because it’s relatively undiscovered. It shouldn’t stay that way for too long, either.
Two-bedroom apartment in Centennial Park
Median price: $1,107,500
Median yield: 3.1%
4. Randwick: the safe bet
Randwick has three major hospitals, one of Sydney’s best (and biggest) universities, several popular schools, and a large commercial area, making it unbeatable in this regard. Because of this, about half of the homes in the suburb are rented.
Recent infrastructure improvements – such as the light rail – have boosted Randwick’s appeal, causing property prices and rents to rise.
Randwick is located near Centennial Park, Clovelly and Coogee beaches, making it attractive to people looking for a park or ocean close to home. There are a wide range of property types available in the area, including terraced homes, studios, art deco jewels and modern apartments, to cater to a variety of investors (and tenants).
Two-bedroom apartment in Randwick
Median price: $1,125,000
Median yield: 3.0%
If you’re still on the fence about buying, we get it. It’s a huge decision that deserves all your careful consideration weighing up the advantages and disadvantages of either scenario.
