Is buying a property in Bondi a good investment?

Last updated on December 20, 2023

Yes, the analysis of Sydney's property market is included in our pack

If you've embraced the coastal beauty and surf culture of Bondi, you may have considered making this picturesque Sydney suburb your idyllic beachside retreat, relishing its seaside lifestyle and scenic views.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Australia, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Bondi?

Bondi, nestled in Sydney, has become a magnet for property buyers, offering a blend of unique attributes that distinguish it from other real estate markets.

This coastal suburb is renowned for its stunning Bondi Beach, an iconic Australian landmark. Imagine the allure of owning a property where the world-famous white sands and rolling surf are just a stroll away.

It's not just about the beach, though. Bondi also boasts a vibrant cultural scene, with a plethora of cafes, restaurants, and shops that add to its lively atmosphere.

Comparatively, Bondi stands out against other areas in Sydney. While suburbs like Paddington or Surry Hills offer their own charm, Bondi's direct beach access and laid-back lifestyle are unrivaled.

This isn't just a residential area; it's a lifestyle choice, attracting those who seek a balance between urban living and natural beauty.

The popularity of Bondi as a real estate hotspot isn't new. It began to surge in the late 20th century, particularly in the 1980s and 1990s, as people started recognizing the unique blend of beachside living and urban convenience.

Since then, its appeal has only grown. The sustained interest in Bondi suggests that this isn't just a fleeting trend. The consistent demand, coupled with limited supply — given its geographical constraints — underpins its enduring appeal.

The kind of people drawn to Bondi is diverse, but there's a common thread; a desire for a dynamic, active lifestyle. It attracts a mix of young professionals, families, and even celebrities.

All drawn by its unique blend of natural beauty, lifestyle, and the cachet of having a Bondi address. The community is vibrant and often seen as trendsetting, adding to its allure for many buyers.

However, every location has its drawbacks, and Bondi is no exception. For one, property prices here are among the highest in Sydney, reflecting its high demand but potentially limiting accessibility for some buyers.

Additionally, the popularity of the area can lead to overcrowding, especially during summer months when the beach becomes a major tourist attraction.

Traffic and limited parking can be challenging, and for those seeking a quieter, more subdued environment, Bondi's bustling nature might be a bit overwhelming.

Make a profitable investment in Sydney

Better information leads to better decisions. Save time and money. Download our guide.

Why is Bondi a nice place to live?

Living in Bondi is like embracing a lifestyle that many dream of.

This iconic suburb, famous for its picturesque Bondi Beach, offers more than just stunning coastal views. It's a place where the lifestyle and culture are as vibrant as the ocean itself.

The lifestyle in Bondi is often described as laid-back yet invigorating. It's a unique blend of beachside relaxation and urban sophistication.

Mornings might start with a surf or a jog along the beach, followed by breakfast at a trendy café. The area is dotted with a variety of eateries and shops, contributing to a lively, cosmopolitan atmosphere.

Culturally, Bondi is a melting pot. There's a significant expat community, adding to the diversity of the suburb. People from all over the world are drawn here, creating a vibrant, inclusive environment. You'll hear different languages and see a mix of global influences in the food, fashion, and arts scene.

However, the cost of living in Bondi is on the higher side. Property prices and rentals reflect its popularity and prime location. Living here means budgeting more for housing and daily expenses compared to other Sydney suburbs. But for many, the lifestyle and location justify the cost.

Safety in Bondi is generally good, with the area being well-patrolled and community-minded. Like any urban area, it's always wise to be street-smart, but residents typically feel safe in their neighborhood.

In terms of amenities and facilities, Bondi is well-equipped. There are several schools, including Bondi Public School and Bondi Beach Public School, catering to families.

For healthcare, the Bondi Junction Medical & Dental Centre provides comprehensive services, and there's also the nearby Prince of Wales Hospital in Randwick. Shopping needs are well met with Westfield Bondi Junction, one of Sydney's largest shopping centers, offering a vast range of stores.

The quality of infrastructure in Bondi is commendable. Roads are well-maintained, and utilities like water and electricity are reliable. Internet connectivity is generally good, with most areas having access to high-speed services.

Getting to and from Bondi is relatively straightforward. While it's a bit removed from Sydney's CBD, the area is well-connected by public transport. Buses are the primary mode of public transport, with frequent services linking Bondi to the city and other parts of Sydney.

Although there's no direct train line to Bondi Beach, the Bondi Junction train station is nearby, providing easy access to the city's rail network.

Bondi's accessibility extends to its proximity to major transport hubs. Sydney Airport is about a 30-minute drive away, making it convenient for travelers.

How much does it cost to buy real estate in Bondi?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Australia.

Buying a property in Bondi can be quite an investment, reflecting the suburb's popularity and its prime coastal location.

In Bondi, you'll find a range of residential properties, including apartments, traditional houses, and luxury villas. The diversity in property types caters to a broad spectrum of buyers, from individuals seeking a beachside lifestyle to families looking for a permanent residence.

Apartments, particularly those with ocean views or close proximity to Bondi Beach, are in high demand. The allure of beachside living, coupled with the convenience of apartment living.

Makes them particularly attractive to young professionals and investors. Houses, while less common near the beachfront, are sought after by families and those looking for more space.

In terms of the real estate market, Bondi has a mix of both new developments and resale properties. New developments tend to focus on high-end, luxury apartments, capitalizing on the suburb's appeal and scenic location. Resale properties vary widely, from older-style apartments to well-maintained houses.

The price range for properties in Bondi is quite broad, but it's generally on the higher end due to the suburb's desirability. For a rough idea, prices per square meter can range significantly. Smaller apartments might be on the lower end of this spectrum, while larger properties, especially those with views or unique features, command much higher prices.

Over recent years, property values in Bondi have shown a strong upward trend. The suburb's popularity, combined with Sydney's overall real estate market dynamics, has contributed to this growth.

While market fluctuations are always possible, Bondi's enduring appeal as a beachside destination within close proximity to Sydney's CBD underpins its property values.

Looking at the future, the real estate market in Bondi is poised to remain robust. Factors like its limited geographical space, the lifestyle it offers, and its status as a sought-after address in Sydney, all suggest that property values are likely to continue their upward trajectory.

One aspect to consider is any upcoming developments or city planning changes. Projects like the revitalization of Bondi Pavilion and improvements in local infrastructure could positively impact property values.

These developments not only enhance the suburb's appeal but also its livability, making it even more attractive to potential buyers.

Where is the best area to buy a property in Bondi?

When considering the best area to buy a property in Bondi, it's essential to understand that Bondi isn't just one uniform area.

It's a suburb with diverse pockets, each offering a different atmosphere, property types, and price ranges.

Let's start with the areas closest to Bondi Beach. This is the heart of Bondi's vibrant lifestyle, where the energy is palpable. Here, you're likely to find a mix of apartments, many with stunning beach views.

These properties are highly sought after, not just for the view but for the lifestyle they offer - think beachside cafes, bustling markets, and a vibrant social scene.

However, this desirability comes with a price tag to match. Properties in this area are typically among the most expensive in Bondi.

Moving away from the beach, the atmosphere becomes slightly more subdued, and the property types begin to vary. You start to see more houses, including classic Bondi semi-detached homes and modern family residences.

These areas offer a more relaxed vibe but still maintain the convenience and charm of Bondi. The prices here can be more varied, offering options for a broader range of budgets.

For those looking for up-and-coming areas within Bondi, it's worth exploring the fringes of the suburb. These areas might not have the immediate name recognition of 'Bondi Beach,' but they offer growth potential.

They often feature a mix of older homes ripe for renovation and newer developments. While these areas may currently lack some of the beachfront glamour, they often provide better value and the opportunity for property appreciation.

In terms of specific areas to focus on, North Bondi is a great option. It's close enough to the beach to enjoy all its benefits but typically quieter and more residential. This area is especially popular with families and those looking for a more laid-back lifestyle.

On the contrary, areas immediately adjacent to the main tourist spots near the beach might not be advisable for everyone. While they offer the allure of beachside living, they can also come with downsides like heavy traffic, limited parking, and noise, especially during peak tourist seasons.

These factors might detract from the livability of the area, especially for those seeking a quieter, more relaxed environment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Australia.

Area	Atmosphere	Property Types	Price Level
Bondi Beach	Vibrant, beachside, social	Apartments (many with beach views)	High
Away from Beach	Subdued, relaxed	Houses, semi-detached homes	Varied
Up-and-Coming Areas	Growth potential, less recognized	Older homes, new developments	More affordable
North Bondi	Residential, family-friendly	Varied, more houses	Moderate to High
Near Tourist Spots	Bustling, noisy	Mostly apartments	High, but with downsides

Don't lose money on your property in Sydney

100% of people who have lost money in Australia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Is there a strong rental demand in Bondi?

In Bondi, there is indeed a strong rental demand, and understanding the nuances of this market is crucial for potential landlords or investors.

Bondi's rental market is diverse, catering to both short-term and long-term rental needs. However, the demand dynamics vary between these two segments.

For short-term rentals, the demand is significantly driven by tourism. Bondi Beach, being a world-famous destination, attracts a large number of tourists, especially in the summer months.

Properties near the beach, particularly well-furnished apartments with ocean views, are in high demand for short-term stays. These are often sought after by vacationers, solo travelers, and couples looking for a beachside holiday experience.

On the other hand, the long-term rental market in Bondi attracts a different demographic. This includes young professionals, small families, and expats who are drawn to the suburb for its lifestyle, proximity to the CBD, and the vibrant community.

The preferred property types for long-term rentals are usually one or two-bedroom apartments for singles and couples, and larger apartments or houses for families. Areas such as North Bondi, which offer a more residential atmosphere, are particularly popular for long-term rentals.

The profile of potential tenants in Bondi is quite varied. You have young professionals working in the city, who value the easy commute and the lively social scene of Bondi. Then there are families who are attracted to the area for its schools and community feel.

Additionally, the expat community, often consisting of people working in high-paying sectors, looks for quality living spaces that offer comfort and convenience.

Certain amenities can significantly enhance the appeal of a rental property in Bondi and help reduce vacancy rates. Properties with modern amenities like air conditioning, updated kitchens and bathrooms, and secure parking are highly desirable.

Additionally, features like outdoor spaces (balconies or gardens) and proximity to public transport, shops, and the beach can be major drawcards.

Talking about potential returns on investment, Bondi's strong rental demand can translate into lucrative opportunities for property investors. While the exact figures can vary, properties in Bondi can fetch healthy rental yields, especially if they are well-located and well-maintained.

For short-term rentals, the returns can be higher during peak tourist seasons, though this comes with higher management requirements.

As for the type of properties that are gaining more demand and could potentially offer better yields, modern, well-located apartments are a safe bet. They appeal to both the short-term and long-term rental markets.

In particular, properties that balance proximity to Bondi Beach with access to local amenities and transport tend to be especially attractive to a wide range of renters.

Make sure you understand the real estate market in Sydney

Don't rush into buying the wrong property in Australia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Is it easy to buy a property as foreigner in Bondi?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Australia.

Buying property in Bondi, Sydney, as a foreigner involves navigating certain regulations and understanding the local real estate market.

In Australia, foreign buyers are subject to specific rules, which can influence the ease of purchasing property.

Firstly, foreign buyers must seek approval from the Foreign Investment Review Board (FIRB). This government body oversees foreign property transactions to ensure they align with Australian interests.

Generally, non-residents are only allowed to purchase new properties or vacant land for development. Buying established homes for investment purposes is typically restricted. This means in Bondi, a popular area for its new developments, foreign investors may have more options compared to suburbs with older housing stock.

The purchasing process in Bondi follows the standard Australian real estate practices. Once a suitable property is found, the buyer makes an offer. If accepted, a contract of sale is drawn up. It's common to pay a deposit (usually around 10% of the purchase price) and then complete the sale in 30-90 days, though this can vary.

In Australia, auctions are also a common way to sell properties, particularly in sought-after areas like Bondi. For foreigners unfamiliar with this process, it can be daunting, as it requires quick decision-making and a clear understanding of your maximum bid.

There are risks associated with property investment in Bondi, as with any real estate market. These include market fluctuations, changes in property values, and potential rental yield variations.

Additionally, as a foreign investor, there are risks related to currency exchange rates and potential changes in government policies regarding foreign ownership.

Common pitfalls for those buying property in Bondi, especially foreigners, include underestimating additional costs such as stamp duty, legal fees, and FIRB application fees.

Another unique aspect is the prevalence of strata-titled properties in Australia, especially in areas like Bondi with many apartments. Managing a strata property involves understanding strata levies and by-laws, which can be complex.

Working with a local real estate agent and a lawyer is highly recommended, especially for foreign buyers. A local agent can provide valuable insights into the Bondi market and help navigate the competitive bidding environment.

A lawyer familiar with Australian property law can assist with legal due diligence, contract review, and ensuring compliance with FIRB regulations.

Finally, common exit strategies for property investors in Bondi include selling the property for capital gain or holding it to generate rental income. The choice of strategy depends on market conditions, personal financial goals, and any changes in the Australian property laws affecting foreign investors.

It's essential to have a clear exit strategy and to be aware of the potential tax implications, both in Australia and your home country, when selling the property.