03 Nov Sydney Units: 5 Suburbs Where Rents Increased and Prices Didn’t!
We thought it would be interesting to look at inner ring suburbs and see which offer the best rental yields for Sydney units. As experienced Sydney buyers agents’ we’re continually researching which suburbs are performing and underperforming and where there are good buying opportunities. Since we’re constantly inspecting properties and attending auctions, we see first hand where there is buyer interest (and not), before reported property data reflects this information.
In our latest research we investigate which inner-mid ring Sydney suburbs represent good value for units both for investors and owner occupiers. We look at how these suburbs have performed over the last 12 months and identify the top five suburbs where rents for units have increased but prices have declined.
Units in Paddington, in Sydney’s Eastern Suburbs represent good buying opportunities particularly for owner occupiers. Rents have increased significantly here over the past year, however Paddington unit prices have dropped 19%. While a 3.33% rental yield might not be enough for all property investors, it represents good value for an owner occupier or a property investor looking for a solid combination of rental yield and capital growth – a strategy that we recommend.
In our view, Paddington units are currently stand out performers.
For pure property investors, Chippendale in the City of Sydney is a suburb that is worth looking at. Chippendale units are returning a 5%+ gross rental yield and unit prices have decreased 11% over the past year. There is strong rental demand for units in Chippendale, due to its convenient location to all the universities.
We share our findings below which identify opportunities for Sydney apartment buyers.
5 Inner-Ring Sydney Suburbs With Rent Increases And Price Drops:
| Suburb | Gross Rental Yield | Rent Increase* | Median Rent (per week) | Median Sale Price* | Median Sale Price Change* |
| 1. Paddington | 3.33% | + 18% | $585 | $820,000 | -19% |
| 2.Darlinghurst | 3.52% | +17% | $670 | $900,000 | -18% |
| 3.Chippendale | 5.12% | + 28% | $765 | $723,000 | -11% |
| 4. Rosebery | 5.43% | +28% | $830 | 783,000 | -7% |
| 5. Marrickville | 4.08% | +15% | $550 | $748,000 | -5% |
* Rent and Price Change Since October 2022
A property with strong rental growth, a high rental yield, and good growth prospects is an attractive investment opportunity. It offers the potential for both ongoing rental income and long-term capital appreciation, making it a desirable choice for investors. However, it’s essential to conduct thorough due diligence prior to purchasing a property.
And if you’re selling an investment property, here is a helpful article written by Tuan Duong, from Duo Tax Quantity Surveyors on how to minimise your capital gains tax.
Contact us for an obligation-free consultation to see how we can help you secure your dream home or apartment. Email us at info@premierhomefinders.com.au or contact Principal & Senior’s Buyers Agent Bernadette Brennan directly on +61 410 568 244.
Source: CoreLogic 24/10/23