10 best suburbs to invest in Sydney in 2024
So far, in 2024, Sydney has high rankings in four of our five metrics, and overall we rank it third in the nation for the year ahead. Sydney has improved its national ranking in all five categories (sales volumes, quarterly price growth, vacancy rates, rental growth and infrastructure spending), and its prospects look better at the start of 2024 than they did a year ago.
20 Mar 2024
So far, in 2024, Sydney has high rankings in four of our five metrics, and overall we rank it third in the nation for the year ahead. Sydney has improved its national ranking in all five categories (sales volumes, quarterly price growth, vacancy rates, rental growth and infrastructure spending), and its prospects look better at the start of 2024 than they did a year ago.
In 2023, the Sydney market experienced a notable transformation; confounding economists who forecast a major decline in property values. It did indeed start last year with poor prospects – having declined significantly the year before – but as the year evolved, Sydney recovered and then surged strongly. Buyer demand has increased in most sectors, particularly where apartments are prominent in the dwelling mix – including the municipalities of Sydney City, Inner West and Canterbury-Bankstown. This is partly driven by affordability, though lifestyle choices also play a part in growing demand for well-located apartments.
Sydney property markets also continue to get a big push from infrastructure projects, with commercial and industrial enterprises, and governments pouring billions into improving transport, education and medical facilities. This is creating economic activity (CommSec ranks New South Wales among the nation’s strongest economies) and employment from which real estate demand flows.
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Top 10 Rising Stars
- Ashfield
- Casula
- Guildford
- Minto
- Mt Druitt
- Newtown
- Padstow
- Penshurst
- St Marys
- Westmead
Ashfield
This Inner West precinct is one of the most vibrant in a busy Sydney market. About 8km from the CBD, Ashfield houses typically cost around $2 million and apartments in the $700,000s. Buyer demand is rising, with sales being dominated by apartments. Ashfield has a commuter train station, Sydney Private Hospital and a number of parks.
Casula
This well-situated suburb in the City of Liverpool ticks a number of important boxes, including commuter train links, the M5/M7 intersection, proximity to the amenities in the Liverpool CBD, major employment nodes nearby and green space along the Georges River. Houses cost close to $1 million and units provide more affordable options around $700,000. Vacancies are below 1% and homes sell within one month.
Guildford
The Cumberland Local Government Authority (LGA) – which is a neighbour of Parramatta – is a busy housing market, with Guildford as one of several suburbs where demand is rising. House prices have recorded double-digit annual growth, with notable uplift in the latest quarter. Dwelling sales are evenly split between houses and apartments, with units less than half the price of houses. Vacancies are 0.6%,which is well below the Sydney average. Guildford has a commuter train station and nearby amenities, including two golf courses.
Minto
People buy homes in Minto because it offers good infrastructure and amenities at prices that are affordable by Sydney standards (median prices $860,000 for houses and $580,000 for units). Buyer demand is rising and houses typically sell within three weeks. Strong rental demand means vacancies are just 0.4% – one of the lowest rates in Greater Sydney. This area has multiple schools, a train station, a number of parks and some major commercial-industrial areas.
Mount Druitt
This is one of major hubs for western Sydney. Mount Druitt has the Blacktown Hospital, a major TAFE campus, Westfield Shopping Centre and a commuter train station. Houses are generally in the $800,000s and units in the $400,000s. Units have comprised 70% of the dwelling sales in the past 12 months, and generally sell in four weeks. Vacancies are low at 0.6%, and yields are above average for Sydney.
Newtown
Newtown is an inner-city location beside the University of Sydney campus, with train stations. Buyer demand and prices are rising, with 330 dwelling sales in the past year. Properties typically sell inside four weeks. Demand for apartments is increasing, with prices in the $700,000s. Median prices for houses are $1.7 million. The vacancy rate is 0.7%.
Padstow
The more expensive Sydney becomes, the more buyers turn their attention to areas like Canterbury-Bankstown, which offers a good location, strong transport links, and great amenities. Padstow is attracting buyers with homes selling quickly here. The M5 Motorway, commuter rail, a TAFE campus and major green spaces around the Georges River are all part of its appeal.
Penshurst
The Georges River municipality is another precinct in Greater Sydney where buyer demand is growing and homes are selling in around three weeks. The median prices in Penshurst are $1.69 million for houses and $630,000 for apartments. Unit sales outnumber house sales. Penshurst sits beside the regional hub of Hurstville, which includes two major shopping centres and a commuter train station.
St Marys
The City of Penrith in the far west of Sydney has a strong identity boosted by the success of its rugby league team. St Marys is attracting buyers for its affordability and infrastructure; with both houses and units selling within three weeks. Rental demand pushes vacancies below 1%. This area has a commercial-retail hub, train and motorway (M4) links, and extensive green spaces.
Westmead
Buyer and tenant demand in Westmead has a lot to do with the Westmead Hospital, Western Sydney University and the nearby Parramatta CBD. Commuter rail and the M4 Western Motorway provide good transport links. Apartments dominate the market here, with over 300 unit sales in the past 12 months at a median price of $550,000.
The 10 best suburbs in Sydney to invest in
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| Suburb | Median price | 1-yr growth | 10-yr average annual growth (%pa) | Vacancy rate | Median rental yield | Initial Outlay (no concessions) on 20% deposit | Monthly repayments |
|---|---|---|---|---|---|---|---|
| Ashfield | $1,885,000 | 5.7% | 6.0% | 1.2% | 2.4% | $464,061 | $9,532 |
| Ashfield (Unit) | $720,000 | -2.1% | 0.9% | 1.2% | 4.1% | $171,466 | $3,641 |
| Casula | $995,000 | 4.5% | 6.0% | 0.8% | 3.4% | $238,841 | $5,031 |
| Casula (Unit) |
$690,000 | 3.7% | 3.7% | 0.8% | 4.3% | $164,116 | $3,489 |
| Guildford | $1,050,000 | 12.3% | 4.6% | 0.6% | 3.2% | $252,316 | $5,309 |
| Guildford (Unit) | $445,000 | -5.3% | -1.0% | 0.6% | 5.5% | $104,091 | $2,250 |
| Minto | $850,000 | 0.0% | 5.8% | 0.4% | 3.5% | $203,316 | $4,298 |
| Minto (Unit) |
$585,000 | 13.4% | 4.9% | 0.4% | 4.4% | $138,391 | $2,958 |
| Mt Druitt | $870,000 | -4.2% | 5.9% | 0.6% | 3.2% | $208,216 | $4,399 |
| Mt Druitt (Unit) | $420,000 | -3.8% | -0.3% | 0.6% | 5.0% | $97,966 | $2,124 |
| Newtown | $1,720,000 | 3.2% | 5.1% | 0.7% | 2.9% | $421,986 | $8,697 |
| Newtown (Unit) | $720,000 | -3.4% | 1.3% | 0.7% | 4.0% | $171,466 | $3,641 |
| Padstow | $1,250,000 | -1.5% | 5.7% | 0.9% | 3.0% | $302,136 | $6,321 |
| Padstow (Unit) | $840,000 | 0.0% | 5.0% | 0.9% | 4.0% | $200,866 | $4,247 |
| Penshurst | $1,690,000 | -5.2% | 6.9% | 0.9% | 2.7% | $414,336 | $8,546 |
| Penshurst (Unit) | $630,000 | -1.6% | -0.6% | 0.9% | 4.6% | $149,416 | $3,186 |
| St Marys | $815,000 | -4.0% | 5.5% | 0.9% | 3.3% | $194,741 | $4,121 |
| St Marys (Unit) | $595,000 | 0.2% | 3.7% | 0.9% | 4.6% | $140,841 | $3,009 |
| Westmead | $1,570,000 | -3.7% | 5.1% | 1.0% | 2.3% | $383,736 | $7,939 |
| Westmead (Unit) | $555,000 | -3.5% | -1.3% | 1.0% | 5.2% | $131,041 | $2,806 |
Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.
Cover image source: Martha Almeyda/Shutterstock.com
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