When most people hear “Australia”, they tend to think of Sydney. From the opera house to Bondi Beach, the iconic New South Wales capital is a popular destination for tourists, but also for expats and house hunters. Property prices are rocketing in Sydney, though, which means that demand is high for more affordable rental accommodation.
Whether you are a domestic landlord looking to expand or an overseas investor in search of yields Down Under, we compare the size of the private rented sector in Sydney’s suburbs with their median apartment price to find the 10 most affordable – and profitable – buy-to-let hotspots.
Private rental share: 61.5%
Over the years, Harris Park has become the home to a growing Indian population, as migrants settle in a community that is now dubbed “Little India” by some. As generations grow up in this multi-cultural suburb, the demand for rented accommodation remains as singular as ever. Low median prices make it a steal for investors.
Private rental share: 54%
Hospitals and transport connections make Westmead a popular choice for families and professionals, but it is also home to a campus of the University of Western Sydney, which makes it worth a look for any buy-to-let investor. Either way, prices under $500,000 mean that returns can be more profitable than other, busier hotspots, despite their larger rental populations.
Private rental share: 61.3%
For those looking to enjoy the waterfront life, Rushcutters Bay would seem like an expensive option, but this suburb has some of the more affordable median unit prices in the capital – and a large number of them to boot. With an ethnically diverse population of tenants eager to occupy them, this is an area well worth sailing into.
Private rental share: 58.8%
Parramatta’s vibrant parks and gardens makes it an attractive place to live. Despite its historical sites, though, the suburb is home to people from all different walks of life – and, crucially, people with more of an interesting in renting property than buying it.
Private rental share: 62%
Nestled on the bank of the Parramatta River, Meadowbank’s location is its biggest strength, something boosted by its array of travel connections, which include trains and ferries. As a result, it is popular with professionals working in the city, which should place it top of your wish list for buy-to-let options.
Private rental share: 54.1%
Macquarie Park is located near Ryde, which is ideal for commuters, but the area is also known for its own, expanding business district, which increasingly attracts companies looking to move offices. Most important for investors, though, is Macquarie University, which means that there is a significant student population in need of accommodation.
Private rental share: 55.8%
Young professionals and older couples are regularly drawn to Rhodes, thanks to its convenient position, facilities and amenities, including a shopping centre. To meet demand, there has been a lot of high-density development, which is good news for investors seeking apartments to rent. Even better news? The population continues to grow, which means supply will take many years to catch up with demand.
Private rental share: 63.6%
Workers are always a productive resource for buy-to-let investors. Located just next to Sydney’s main business district, Chippendale enjoys all of the benefits of demand from commuters without the sky-high prices of the central postcodes.
Private rental share: 65.9%
Over years as a hub of the produce trade, Haymarket has become a meeting place for global cuisine. Home to Chinatown, as well as Thai and Korean food, not to mention vibrant nightlife, Haymarket is a melting pot of international residents, most of whom tend to rent rather than purchase property. A tasty investment proposition.
Private rental share: 63.6%
Located next to Haymarket, Ultimo enjoys a significant overspill from the neighbouring suburb. Combined with the presence of the Australian Broadcasting Corporation’s HQ, the area’s demand for rental accommodation is also strong, but the lower median apartment price than Haymarket means that landlords can expect a higher yield.
Want more information on suburb affordability and house pricing? Use propertyDATA– Australia’s preferred property information solution.