Where to Invest in Sydney Property in 2023

February 1, 2023
invest in sydney property

Key takeaways:

  • If you are looking for something other than fast profits or rental yield, then it will be wise to invest in the Sydney market since there are many indicators of an upsurge in property prices soon.
  • Median house prices have a strong potential for an increase in 2023.
  • Prices in these regions are within the range of the overall Sydney median price.

Sydney properties could have had a better 2022 when it came to value appreciation. While statistics show that property value and prices in the region stabilised a fair bit from October to November, the gains recorded in previous years slightly diminished. So, you may be wondering where to invest in Sydney property in 2023.

Suppose you turn your attention away from the current low property prices for a second. In that case, it is easy to see that several indicators suggest an incoming reset in the prices of properties in Sydney.

Hence, despite the drop in property valuation and median unit price growth, it still makes sense to invest in properties in this region of Australia.

To help with this move, we’ll be looking at signs of the predicted uptick in property prices and interest rates. Also, we’ll look at where to invest in Sydney property in 2023 for the highest rental yields. Along with our guide to the best places to invest in Australia in 2023, you’ll be fully equipped to make the best investment decision for you.

Recommended Reading: Highest Growth Suburbs in Sydney in 2023

Indicators and Predictions

  • Despite having a bad 2022, Sydney properties have some favourable statistics showing some light at the end of the tunnel. According to PropTrack, Sydney dwelling prices are still up 21.4% since the beginning of March 2020, before the COVID pandemic hit.
  • Projections show that Sydney may have a population of up to 10 million in the next decade. A potential upsurge in population numbers in the near future guarantees an increase in prices. You can buy low now and sell later for reasonable profits in the future. 
  • Sydney boasts of the biggest economies in Australia and can attract migrants from all over the world. It also can create jobs for knowledgeable workers who’ll draw high pay with the capacity to buy properties.

Despite the rigours of the past year, the Sydney property market had strong auction clearance rates in the past spring selling rates. This is according to the reports of the Sydney property auction clearance trends, December 2022.

Where to invest in Sydney property in 2023

With a potential for a future rise in prices, Sydney is one of the best places to buy an investment property in NSW, provided you can afford it.

However, you have to ensure you invest in the right places. For example, the suburbs are some of the best places to buy property.

Below are some top investment suburbs that will help you avoid making costly business mistakes in 2023.

Bear in mind that their locations are approximately 15 kilometres from the CBD. They are also within walking distance. They also have an above-average Demand Supply Ratio (DSR). Lastly, they exceed the Australian median weekly income and have a growing population.

If you plan to invest in Sydney property, here are the best locations to get your money’s worth:

1. Maroubra 

Apartment for sale in Maroubra NSW

This is an Eastern suburb located close to the beachside of Sydney. You’ll find these properties in the Southeastern part of the Sydney CBD.

In addition, Maroubra is the most prominent suburb in the area. This area is under the administration of the Randwick City Council. 

It has an approximate population of 30722 people and is located 10 kilometres South East of the Sydney CBD. 

It has a walk score of 74, making it a great city for going on leisure walks. 

Discover more properties for sale in Maroubra.

2. Coogee 

Apartment for sale in Coogee NSW

Also located in the Southeastern part of the Sydney CBD, Coogee is a gentrified suburb; with excellent potential for infrastructural development soon; there is already an increased demand for properties. 

Coogee is 8 kilometres South East of the CBD. The suburb currently has a population of 14,780 people, with a median household income of $2976 (weekly). The median house price remains constant in this region.

The proposed $2.2 billion South Eastern rail line will connect the 12 kilometres network from Circular Quay to Kingsford. This development will have a big impact on the prices of properties. 

Coogee is walkable with a score of 79.

Discover more properties for sale in Coogee.

3. Neutral Bay 

Apartment for sale in Neutral Bay NSW

You’ll find Neutral Bay on the Lower North shore of Sydney. It is a harbourside suburb that’s attracting top earners in Australia

It is located in the northern segment of Sydney CBD in the local government council of North Sydney. Surrounding suburbs include Cremorne, Milsons Point, and Cammeray. 

Neutral Bay has a population of 10,181 people. Its location ensures that it’s also very walkable. 

Discover more properties for sale in Neutral Bay.

4. Balmain 

Apartment for sale in Balmain NSW

If you are looking for a classy neighbourhood in Sydney suburbs, you seriously have to consider Balmain. It is west of Sydney CBD and has popular trendy locations. 

There is a generous distribution of artisan bakeries, boutique stores, and vibrant eateries. Also, you’ll find seasoned cafes and pubs on Victorian buildings in Darling Street.

The area holds artists’ homes, wealthy families, and the influential. It is a choice destination with desirable properties

With a population of 10,496 and counting, there’s a large pool of property sellers and buyers to take advantage of, thanks to the reasonable median unit prices available. 

Furthermore, with a walk score of 93, Balmain is a walker’s paradise.

Discover more properties for sale in Balmain.

5. Cammeray 

Apartment for sale in Cammeray NSW

You’ll find this area north of Sydney CBD. It is a suburb located on the lower North shore section of Sydney. The building in this area is unique. You’ll find many stand-alone facilities and semi-detached double or single-storey buildings.

It is the perfect place for people looking to live in an area with lots of trees and other gifts of nature. 

When you take an aerial view of this suburb, it’s hard to miss all the greens generously distributed across the available space. 

Though it’s not as populated as other neighbouring suburbs, it still holds houses that belong to people with at least an income of $2870. With these numbers, there’s room for rental growth.

Discover more properties for sale in Cammeray.

6. Dulwich Hill 

Apartment for sale in Dulwich Hill NSW

Dulwich Hill is the pride of the inner west of Sydney, found in the Southwest region of Sydney CBD. This residential area has many buildings with designs that follow the approved federation structure. This may be because of Dulwich Hill’s proximity to Cooks River, and the area stretches towards the southern part of the shore of this river. 

A unique part of this suburban area is the wide streets. Houses are also bigger than usual, but they are relatively affordable units.

Alongside the wide streets, Dulwich is also very walkable. Its population is also growing, which makes it one of the potential hubs of investment property in the future.

Discover more real estate for sale in Dulwich Hill.

Liked learning where to invest in Sydney property?

Finding where to invest in Sydney property in 2023 should not be a problem. You can begin your search and investigations in any of the suburbs discussed in this article.

If you need more advice on financing, don’t forget to browse our finance category. It’s chock full of hacks and advice from industry professionals. And remember to download the Soho app for quicker browsing and property matching. It’s getting you into your dream home faster!

Soho is your expert team in Australian real estate, offering an innovative platform for effortless property searches. With deep insights into buying, renting, and market trends, we guide you to make informed decisions, whether it's your first home or exploring new suburbs.
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