Is buying a property in Coogee 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 enjoyed the beachfront charm and laid-back atmosphere of Coogee, you might have contemplated settling down in this peaceful part of Sydney, experiencing its coastal ambiance and relaxed lifestyle.

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 Coogee?

Coogee, nestled in Sydney, has evolved into a sought-after location for property buyers, a trend that began gaining significant momentum in the early 2000s.

This suburb's allure lies in its unique blend of natural beauty, lifestyle offerings, and proximity to Sydney's central business district, distinguishing it from other real estate markets in the city.

Firstly, Coogee's picturesque setting is a major draw. The stunning Coogee Beach, with its inviting sands and sparkling waters, offers a quintessential Australian beach experience.

This coastal charm is something that many inner-city suburbs simply can't match. It's not just about the beach, though. Coogee also boasts a range of coastal walks, parks, and recreational facilities, making it an ideal spot for outdoor enthusiasts and families.

In terms of lifestyle, Coogee strikes a balance between a relaxed beachside vibe and vibrant urban living. The area is peppered with trendy cafes, restaurants, and boutiques, offering residents a taste of cosmopolitan living alongside laid-back beach culture.

This contrast is particularly appealing to those who seek a blend of leisure and city life, a combination that's relatively rare in other Sydney suburbs, which tend to lean either towards the urban or the suburban end of the spectrum.

Comparatively, when looking at other areas in Sydney, Coogee holds its own thanks to its accessibility. It's well connected to Sydney's CBD and other key areas through efficient public transport and road networks.

This ease of access makes it a convenient choice for professionals who work in the city but crave a seaside lifestyle.

The demographic drawn to Coogee is quite diverse, encompassing young professionals, families, and even retirees. The mix of modern apartments and traditional homes caters to a wide range of preferences and budgets, although it's worth noting that the property prices here are generally on the higher side, reflecting the suburb's desirability.

Despite its many positives, Coogee does have its drawbacks. The popularity of the area can lead to crowded beaches and parks, especially during summer.

Additionally, the real estate market here can be quite competitive, with high demand often leading to elevated property prices. This aspect makes it a challenging market for first-time buyers or those on a tighter budget.

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Why is Coogee a nice place to live?

Coogee is often celebrated as a wonderful place to live, and there are several reasons for this.

The lifestyle and culture in Coogee are a big part of its charm. Imagine a laid-back, beachside atmosphere combined with a vibrant social scene. It's a place where outdoor activities are a daily routine, thanks to its stunning beach and coastal walks. The community vibe in Coogee is strong, with local events and a friendly neighborhood spirit adding to its appeal.

The expat community in Coogee is quite significant, contributing to the area's diverse and cosmopolitan feel. Expats are drawn to the suburb for its relaxed lifestyle, beautiful natural surroundings, and proximity to Sydney's central business district.

They often find it easy to integrate, thanks to the welcoming nature of the local community and the various social activities available.

Living in Coogee does come with a higher price tag compared to some other suburbs. The cost of living here reflects its desirability and prime location. This includes housing, which tends to be more expensive due to high demand.

However, many residents feel that the lifestyle and amenities offered in Coogee justify the cost.

Safety is another aspect where Coogee stands out. It's generally considered a safe suburb, with a low crime rate compared to other urban areas. This sense of safety contributes to the quality of life and is especially valued by families and those who enjoy an active, outdoor lifestyle.

Speaking of amenities, Coogee is well-equipped with facilities. For families, there are reputable schools like Coogee Public School and St Brigid's Catholic Primary School. In terms of healthcare, the Prince of Wales Hospital, a major hospital in Sydney, is nearby in Randwick.

For shopping, The Spot in Randwick and the Westfield Bondi Junction are not too far away, offering a wide range of shops and eateries.

The infrastructure in Coogee is quite solid. The roads are well-maintained, and utilities like water and electricity are reliable. Internet connectivity is generally good, with various options available to residents. This makes it a convenient place for both professionals and families.

Access to and from Coogee is fairly straightforward. It's well connected to other parts of Sydney, making it easy to get around.

The suburb doesn't have its own train station, but there are plenty of buses that connect Coogee to the city and surrounding areas. The Sydney Airport is also relatively close, making it convenient for frequent travelers.

In terms of public transportation, the bus service in Coogee is efficient and widely used. Buses run regularly to the CBD and other key locations, such as Bondi Junction and Eastgardens. This network makes it feasible to live in Coogee without a car, as public transport options are both accessible and reliable.

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

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 Coogee can be a substantial investment, reflecting its status as a highly sought-after coastal suburb.

The types of residential properties available in Coogee are quite diverse, including apartments, traditional houses, and in some areas, luxury villas. Each type has its own appeal, catering to different lifestyles and preferences.

Apartments, particularly those with ocean views or close proximity to the beach, are in high demand. Their popularity stems from the lifestyle they offer - easy maintenance, convenience, and often, access to communal amenities like pools or gyms.

Houses, on the other hand, are sought after by families or those looking for more space and privacy. While luxury villas, though less common, attract high-end buyers seeking exclusivity and opulence.

The real estate market in Coogee predominantly consists of resale properties, as the area is well-established with limited scope for new large-scale developments.

However, there are occasional new developments, usually in the form of boutique apartment complexes or townhouses.

Price ranges for properties in Coogee vary significantly based on factors such as size, location, view, and property type. On average, prices per square meter can be quite high, reflecting the area's desirability.

For example, a standard apartment might range from a certain amount per square meter, while houses and luxury villas command higher prices, often significantly more per square meter.

Over recent years, property values in Coogee have generally been on an upward trend, driven by high demand and the suburb's enduring appeal. This trend has been influenced by factors such as its beachside location, lifestyle amenities, and proximity to Sydney's CBD.

Looking at potential future developments and city planning changes, any new infrastructure or amenities in or around Coogee could impact property values.

For instance, improvements in transport connectivity or the development of new public spaces could make the area even more attractive to potential buyers, potentially driving up prices.

Predicting the real estate market's future in Coogee involves considering several factors. The ongoing appeal of coastal living, combined with the suburb's established nature and limited new development opportunities.

Suggests that demand for properties in Coogee will likely remain strong. This could lead to continued growth in property values, especially if the broader Sydney market remains robust.

Specific factors that indicate a potential increase in property value in Coogee include its limited property supply, the high desirability of coastal living, and any improvements in local amenities or infrastructure.

Additionally, if Sydney's overall real estate market continues to perform well, Coogee's property market is likely to benefit correspondingly.

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

When considering where to buy property in Coogee it's important to understand that different parts of this suburb offer varied atmospheres, property types, and price points.

Coogee's diversity means that the "best" area can vary greatly depending on your personal preferences and needs.

One of the most coveted areas in Coogee is close to the beachfront. Properties here, particularly those with ocean views, are highly prized. This area is characterized by a lively atmosphere, with easy access to Coogee Beach, coastal walks, cafes, and restaurants.

The property types here are predominantly apartments, ranging from older-style units to luxury developments. Due to their desirable location, these properties tend to be on the higher end of the price spectrum.

Moving away from the beach, the atmosphere becomes more residential and tranquil. These areas are popular among families and those seeking a quieter lifestyle while still being close to the beach.

You'll find more houses here, including freestanding homes and semi-detached properties. The prices in these areas can be slightly more affordable than beachfront properties, but they still reflect Coogee's overall desirability.

As for up-and-coming areas within Coogee, it's worth keeping an eye on the sections that are slightly further from the beach. These areas might offer more competitive pricing while still providing good access to all that Coogee has to offer.

Streets that are a bit further from the main beach area can offer better value for money and might be particularly appealing for those looking for a bit more space.

In terms of where to focus your property search, areas like Dolphin Street and Arden Street are popular due to their proximity to the beach and Coogee’s central amenities. These streets strike a good balance between accessibility to the beach and relative quietness compared to properties right on the beachfront.

On the contrary, areas immediately adjacent to the main roads or nightlife spots might not be as advisable for those seeking peace and quiet. These areas can be noisier, especially on weekends and during the summer months when tourist activity peaks.

Additionally, parking can be more challenging in these spots due to the influx of beachgoers.

Ultimately, the best area to buy a property in Coogee will depend on your lifestyle preferences, budget, and what you prioritize in a home.

Whether you're after the vibrant beachfront atmosphere, a family-friendly neighborhood, or a balance of tranquility and accessibility, Coogee offers a range of options to suit different needs and preferences.

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 Range	Additional Notes
Beachfront	Lively, tourist-friendly	Apartments, some luxury developments	High	Close to beach and amenities, ocean views
Residential (Away from Beach)	Tranquil, family-oriented	Houses, freestanding and semi-detached	Moderate to High	Quieter, more space, family-friendly
Further from Beach	Residential, up-and-coming	Mixed, good value properties	Moderate	More affordable, still good access to amenities
Main Roads/Nightlife Spots	Busy, noisier	Varied, closer to nightlife	Varies	Possible noise and parking issues

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Is there a strong rental demand in Coogee?

Coogee certainly has a strong rental demand, thanks in large part to its beachside location, lifestyle amenities, and proximity to the city center.

Understanding the nature of this demand, however, requires delving into specifics such as the type of rental, the target demographic, and the properties that are most sought after.

The rental demand in Coogee caters to both short-term and long-term needs, but the dynamics for each are different. Short-term rentals are particularly popular during the summer months and holiday seasons, attracting tourists and visitors looking for a beachside experience.

These renters often seek properties close to Coogee Beach, valuing easy access to the sea, cafes, and local attractions. Apartments, especially those with views or modern amenities, are highly sought after in this segment.

Long-term rentals, on the other hand, attract a more diverse group, including young professionals, families, and expatriates. These renters are often drawn to the suburb for its lifestyle, community feel, and, for professionals, the ease of commuting to Sydney's CBD.

They tend to look for stability and are more interested in the residential areas of Coogee. Here, a mix of apartments and houses are in demand, with a particular interest in properties that offer a balance of space, comfort, and proximity to local amenities like schools, parks, and shopping areas.

Speaking of potential tenants, their profiles are quite varied. Young professionals often look for modern, low-maintenance apartments, preferably furnished and with good internet connectivity, as working from home has become more prevalent.

Families, on the other hand, lean towards spacious houses with yards or close proximity to schools and parks.

Expatriates, who might be in Sydney for work, often seek comfortable, well-located properties that offer a quick commute to the city and a local lifestyle experience.

In terms of specific areas within Coogee, properties near the beach and main commercial strips are popular for short-term rentals due to their appeal to tourists.

For long-term rentals, quieter streets away from the immediate beachfront but still within walking distance to the beach and amenities are often preferred.

Amenities that can help reduce vacancy and increase appeal include secure parking, as street parking can be limited in Coogee, especially during peak periods. Modern fittings, outdoor spaces like balconies or gardens, and access to public transport can also be significant drawcards.

Regarding the potential returns on investment for properties in Coogee, they can be quite attractive. The exact figures will vary depending on the property type, location, and market conditions, but rental yields in popular Sydney suburbs like Coogee are generally favorable.

Investors might see a decent annual return on their investment, especially if they cater to the high demand for both short-term and long-term rentals.

Properties that are gaining more demand, and thus potentially offering better yields, include well-maintained apartments with modern amenities and houses that offer a balance of space and convenience.

As the work-from-home trend continues, properties that can accommodate a home office setup are increasingly attractive.

Additionally, any property that offers something unique, like an exceptional view or a large outdoor space, can command a premium in the rental market.

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

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 a property in Coogee, Sydney, as a foreigner comes with its own set of challenges and considerations, largely due to Australia's regulations on foreign property ownership.

Understanding these regulations, the purchasing process, potential risks, and the importance of local expertise is crucial for a successful investment.

Firstly, Australia has specific regulations for foreign buyers, primarily managed by the Foreign Investment Review Board (FIRB). Foreigners typically need to obtain FIRB approval before purchasing property in Australia.

This process involves an application fee and can influence the types of properties foreigners are allowed to buy.

Generally, foreign investors are restricted to purchasing new properties or vacant land for development, rather than existing residential properties.

The purchasing process in Coogee follows the standard Australian property buying process. Once you've found a property, you make an offer or bid at auction. If your offer is accepted, you sign a contract and pay a deposit.

The process then moves towards settlement, where the balance of the purchase price is paid. It's important to be aware of additional costs like stamp duty, legal fees, and FIRB application fees.

One primary risk associated with property investment in Coogee, especially for foreigners, is the potential fluctuation in the Australian real estate market. While Coogee is a sought-after area, the market can still be subject to cycles of boom and bust.

Additionally, changes in foreign investment regulations or tax laws can impact the return on investment.

Common pitfalls for foreign investors include underestimating the total cost of purchase, including taxes and fees, and not fully understanding the local market and legal requirements.

For instance, Australia has strict rules about capital gains tax and property management for foreign owners, which can be quite different from other countries.

Working with a local real estate agent and a lawyer is highly advisable. A local agent can provide invaluable insights into the Coogee property market, help navigate the bidding or negotiation process, and identify properties that meet FIRB requirements.

A lawyer, meanwhile, can ensure compliance with legal and regulatory requirements, handle contract matters, and advise on legal obligations as a property owner in Australia.

Common exit strategies for property investors in Coogee include selling the property for capital gain or holding it to generate rental income. The choice of strategy often depends on market conditions and personal investment goals.

It's essential to be aware that if a foreign investor decides to sell the property, they may be subject to capital gains tax, and FIRB rules may influence the sale process.