Recent data shows that the Eastern Suburbs dominate Sydney’s most-searched suburbs for rentals. We take a look at the suburbs that made the top 10 and why they’re a good investment for buyers.
Recent data from Domain Group shows what we at Taylors Property Management already know: The Eastern Suburbs is the most sought-after area for renters in Sydney. We take a look at why the east is in demand for tenants and why buying in the east is a smart move for investors.
The Most Popular Eastern Suburbs For Renters
According to Domain Group audience data from February 2018, half of Sydney’s top 10 most-searched suburbs for rentals are in the Eastern Suburbs. Surry Hills, Paddington, Darlinghurst, Randwick and Bondi all made the list.
This list represents a great mix of what makes the Eastern Suburbs so desirable to residents, with a focus on proximity to the beach and the CBD through access to great public transport. Randwick is also coveted for its access to nearby UNSW and Centennial Park, as well as the new light rail development that will ease commutes for many locals. Leisure and entertainment opportunities also abound in all five suburbs, though Paddington, Darlinghurst and Surry Hills perhaps benefit the most from excellent restaurants, cafes and bars surrounding Oxford, Crown and Victoria streets.
Properties Available For Rent In The Eastern Suburbs
There’s a great range of property types to be found in these suburbs, making them attractive for renters of all family sizes and life stages. At Taylors, we regularly have properties ranging from studio apartments to houses, providing a lot of options for potential tenants.
Investing In The Eastern Suburbs
The popularity of these suburbs with renters makes them an excellent choice for investors who won’t be short of tenants in the in-demand pockets of the east. But it’s not just good vacancy rates – these suburbs also perform strongly for rental yields and capital growth, so they’re sound decisions no matter your investment strategy.
Take Surry Hills, for example, where capital growth for units is currently at 10.6% and rental yield is high at 3.9%, according to the latest REA Group figures. For houses, growth is even stronger at 13.8% and rental yield is 2.6%, though houses are a little less common than apartments in the east.
Similarly, units in Bondi record capital growth of 10.9% and rental yield of 3.2%, while houses are 13.1% and 2% respectively. Rental yield on units is also high in Darlinghurst at 3.6% and capital growth is quite strong at 8%. For a strategy focused primarily on growth in Darlinghurst, houses can be a better option with annual growth of 10.4%.
In Randwick, it’s no surprise that rental yield on units is strong at 3.5%, thanks to the popularity of housing near the university, and growth is also positive here at 8% for units and 10.5% for houses. Over in Paddington, rental yield is 2.9% for units and 2.7% for houses, but growth is still strong at 8.2% and 9.3% for units and houses respectively.
Looking To Invest In The Eastern Suburbs?
It’s clear from these statistics that the Eastern Suburbs is popular for a reason, both with tenants and investors.
If you’re thinking about investing in the Eastern Suburbs, or you’re a tenant looking for a rental, get in touch with our team of specialists today.