The Best Sydney Suburbs To Invest In

Purchasing property for investment in any Sydney suburb is likely always to pay off, especially in Sydney where property prices are expected to continue rising in 2022 and beyond. Interest rates are also currently at an all-time low, making this year an excellent time to begin investing in property. There’s also a trend in investment shifting away from the many inner-city suburbs to more regional areas of Sydney making these the ten best suburbs with high capital growth in Sydney: Ashfield, Narrabeen, Bexley, Cronulla, Bardwell Park, Coogee, Kensington, Maroubra, and Fairlight.

To break it down a little more, here are more details about the suburbs we can assist you with:


A gentrified coastal suburb located southeast of the CBD, Coogee is a suburb that is seeing rocketing house prices as light industrial developments and infrastructure projects unfold. The South-East Light Rail project is one such endeavour connecting Coogee to neighbouring Suburbs and making it an attractive residential suburb for renters and investors alike.

However, Coogee house prices aren’t low. The average house price is currently topping $3,601,000. Investors bring in an average of $1,300 a week in rent. Unit prices are around $1,392,500, with rental income averaging $650 a week. It’s a very high demand market, and prices have steadily increased over the last five years.

Many property investors in Coogee make their start by adopting a negative gearing strategy. With strong rental yield and high prices, negative gearing might be considered the best option to make long-term gains in Coogee.


Cronulla is located to the south of Sydney. It’s close proximity to the beaches while maintaining a spacious atmosphere. With locals naming it “God’s Country”, Cronulla is a popular destination suburb. It’s home to stunning ocean views, breathtaking scenery, and contemporary architecture.

Property prices are lower than in any other established residential area, such as in the Northern Beaches or Eastern Suburbs. Demand is not much higher than the average in New South Wales at the moment, making it relatively easy to secure home loans for properties here.

The median property price in Cronulla is currently $2,350,000 for houses and $810,000 for units. The average rental yield is 1.9% for homes and 3.2%. Investors in Cronulla never lack for renters, making this one of the best suburbs to invest in New South Wales. Plus, Cronulla has seen a compound growth rate of 5.5% for houses and 2.9% for units over the last five years.


Kensington is 6km to the immediate southeast of the CBD in the City Of Randwick government area. Nearby is Moore Park and Randwick Racecourse. The suburb is also home to the University of New South Wales and the exclusive Australia Golf Club.

If you’re looking for very walkable suburbs, then Kensington offers easy access to Bondi and Coogee beaches while also a short journey away from the Inner West.

The median household income in Kensington is $1498 a week, above that of the Australian median household income. Real estate is expensive in the area; however, rental yields are well-positioned to increase as the area is home to students. Therefore, vacancy rates are rarely that high.

The average property price is higher than that of surrounding suburbs, costing $3,312,500 to buy a house or $970 to rent. Units cost significantly less to buy. The average price is around $942,500, with a rental income of $485 per week.


Maroubra is significantly more affordable than its neighbours in the Eastern Suburbs. Located 10km from the Sydney CBD, it’s an attractive prospect on the Sydney property market. With a stunning beach and excellent public transport, Maroubra is suitable for all residents and the largest suburb in the area.

The median house price in Maroubra is $2,300,000 for houses and $905,000 for units. Property investors can expect to receive $900 a week in rental income for houses with a rental yield of 2%. Units can expect to bring in $550 a week with an annual yield of 3.2%.

Contact us…

If you’re looking to buy in these mentioned areas or surrounding suburbs, or you would like to discuss the current market value of your property, please contact James Giltinan on 0417 250 691 or – I’d love to chat. And if you’d like to discuss Property Management, please call (02) 9665 3341.

{Source: Lend Street}