Where To Invest In Sydney's Eastern Suburbs

Where To Invest In Sydney's Eastern Suburbs

Mark Taylor,

A recent Corelogic report shows that the Sydney’s Eastern Suburbs are among the best in the country for rental yield, capital growth and high median rents. Here are the suburbs to consider when buying an investment property.

Sydney’s Eastern Suburbs have been among the city’s best for investing for many years, a fact that was confirmed in CoreLogic’s most recent Best of the Best report. In highlighting the nation’s top-performing suburbs across a range of real estate categories, the 2017 data shows that the east is unrivalled for investors looking to capitalise on some of Australia’s highest rents, strongest capital growth and best rental yields. 

So where should you invest in Sydney’s East? 

Best Eastern Suburbs For Capital Growth 

Despite a slowing market, the report shows there’s still great things happening in the Eastern Suburbs, with Waverley identified as one of Sydney’s best suburbs for growth over the past five years. Waverley recorded the ninth-biggest price change for Sydney apartments in a five-year period, with the median price increasing 105.9% to $1,065,914 by the end of 2017. 

This incredible growth shows that there’s still excellent investment potential in Waverley, as renters continue to be drawn to the suburb’s proximity to the beaches, Centennial Park, Bondi Junction shopping and more.

Those looking to invest a little closer to the city would also benefit from buying a house in Woolloomooloo, with CoreLogic’s list placing the CBD border suburb at number nine for 5-year change in median house prices. Prices grew an incredible 137.2% in Woolloomooloo during this period, finishing at $1,766,122.

Highest Median Rents In The Eastern Suburbs

The popularity of the Eastern Suburbs among young professionals and growing families means that rents are high across the board, which is great news for potential landlords. In fact, the nationwide 10 highest median rents is a direct replica of the top 10 median rents in Sydney, as the harbourside city continues to command the highest rental prices in the country. Within these lists, the Eastern Suburbs are represented more than any other area of Sydney.

When it comes to houses, seven of the 10 suburbs with the highest rents are located in the east, with Bellevue Hill sitting at the top of both the Sydney and national lists: 

  • #1 Bellevue Hill: median rent $1875 pw
  • #3 Vaucluse: median rent $1795 pw
  • #4 Clovelly: median rent $1750 pw
  • #5 Double Bay: median rent $1735 pw
  • #6 Rose Bay: median rent of $1700 pw
  • #7 Dover Heights: median rent $1675 pw
  • #10 Potts Point: median rent $1525 pw

For units, the highest median rental prices are spread more across the city, but the list still feature three Eastern Suburbs in the top 10:

  • #2 Tamarama: median rent $920 pw
  • #5 Darling Point: median rent $848 pw
  • #9 Double Bay: median rent $770 pw

Best Rental Yields In The Eastern Suburbs

For property investors with an investment strategy focused on rental yields, there’s a lot of opportunity in the Eastern Suburbs and its neighbours. The Eastern Suburbs fringe proved strong for highest gross rental yields within 10kms of the city, both for units and houses. 

On the houses front, Waterloo, Woolloomooloo, Alexandria and Chippendale all made the list for highest median rental yields, with Waterloo topping the list at 3.4% and the others falling between 3.4% and 3.1%. 

For units, the city fringe is also among the highest rental yields in Sydney, with Ultimo and Chippendale both at the top of the list at 4.5%, followed by Darlington at 4.4% and Waterloo at 4.3%. 

Looking To Invest In The Eastern Suburbs? 

Contact our experienced team of specialists today for advice on your investment property. 

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