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Best areas to buy and invest in property in Sydney

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property investment Sydney

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

The question of 'the best neighborhood to buy a property in Sydney' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At BambooRoutes, when we write a blog post or when we update our our property pack for Australia, we want to bring solutions and cover different aims in a clear and organized way.

Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Sydney into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

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buying property in Sydney

How is the real estate market in Sydney?

The real estate market in Sydney is a vibrant and dynamic sector, reflecting the city's unique position as a global hub in Australia.

Sydney is renowned for its stunning natural beauty, including iconic beaches like Bondi and Manly, and landmarks such as the Sydney Opera House and Harbour Bridge.

These aren't just tourist attractions; they contribute significantly to the city's allure for potential property buyers. It's not just about the scenic views; Sydney's robust economy, diverse culture, and high standard of living are magnetic draws for residents and investors alike.

One of the strengths of Sydney's real estate market is its appeal to a broad spectrum of buyers. From young professionals seeking vibrant city life to families looking for spacious homes near top-tier schools, Sydney caters to a diverse demographic.

Additionally, the city's reputation as a safe, clean, and well-managed metropolis makes it highly attractive for foreign investors. They're drawn not only by the lifestyle but also by the stability and growth potential of the Australian property market.

The dynamism of Sydney's real estate market can be seen in its consistent growth in property values. For instance, despite global economic fluctuations, Sydney's property prices have shown resilience, with a notable percentage increase in median house prices over recent years.

This is a testament to the city's enduring appeal and the high demand for property here.

A unique and positive aspect of Sydney's real estate market is the blend of modern and heritage properties. You'll find cutting-edge architectural designs in new developments, alongside beautifully preserved historical homes.

This diversity in property types adds a distinctive character to Sydney's housing market, which is rare in other global cities.

Looking towards the future, several factors indicate that properties in Sydney will continue to gain value.

The city's ongoing infrastructure development, like new public transport projects and commercial hubs, is set to enhance connectivity and liveability.

Additionally, Sydney's status as a leading education and business center in the Asia-Pacific region ensures a steady influx of students and professionals, maintaining high demand for housing.

Furthermore, the city's commitment to sustainable development and green living initiatives makes it an increasingly attractive choice in an environmentally conscious world.

Top neighborhoods in Sydney to consider for living

Areas in Sydney that are budget-friendly

If you're looking to buy property in Sydney on a budget, there are a few neighborhoods you might want to consider.

Here is a summary table. Below, we will give more details.

Neighborhood Property Types Potential for Growth Resident Demographics Strengths Weaknesses
Blacktown Apartments, Family Homes Infrastructure Developments Young Families, Professionals Urban Amenities, Green Spaces Still Developing in Parts
Campbelltown Older Houses, New Developments Urban Renewal Projects Long-term Locals, Newcomers Community Vibe Distance from CBD
Liverpool Residential and Commercial Significant Transformation Multicultural Community Cultural Diversity, Amenities Distance from Center, Construction


Known for its affordability, Blacktown offers a mix of residential properties, including apartments and family homes.

The average price per square meter in Blacktown is relatively lower compared to Sydney's inner suburbs. This area is popular among young families and professionals due to its balance of urban amenities and green spaces.

Prices might rise in the future due to ongoing infrastructure developments and improved transportation links.

However, it's important to note that some parts of Blacktown are still developing, which means amenities might not be as abundant as in more established areas.


This neighborhood is another budget-friendly option, with a diverse range of properties, from older houses to new developments.

It's particularly appealing due to its community vibe and the potential for growth, thanks to planned urban renewal projects.

The average price per square meter in Campbelltown is competitive, making it a great option for first-time buyers. Residents are a mix of long-term locals and newcomers, adding to the area's inclusive feel.

However, its distance from the Sydney CBD might be a downside for those who commute.


Liverpool offers a blend of residential and commercial properties at reasonable prices.

The area is undergoing significant transformation, which might lead to an increase in property values. It's home to a multicultural community, attracting a variety of residents.

The average price per square meter in Liverpool is lower than many other Sydney suburbs, but with the new developments, this might change.

Liverpool's strengths lie in its cultural diversity and amenities, but its distance from the city center and ongoing construction work can be seen as drawbacks.

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Areas in Sydney that are popular and upscale

When looking to buy property in Sydney, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.

Neighborhood Average Price per Sqm Property Type Resident Demographics Strengths Weaknesses
Mosman High Heritage homes, modern apartments Affluent professionals, families Scenic beauty, great schools High cost of living, traffic
Point Piper Very High Expansive estates, sophisticated apartments Celebrities, business moguls Exclusive, peaceful Lacks amenities, isolating
Double Bay High Townhouses, apartments, old homes Wealthy families, young professionals Cafe culture, beach access Parking issues, crowded


Situated on Sydney's Lower North Shore, Mosman is a neighborhood known for its opulent homes and stunning harbor views.

It's expensive due to its prime location and luxurious properties. You'll find large, heritage-listed homes and modern apartments in Mosman. The average price per square meter in Mosman is among the highest in Sydney, reflecting its desirability.

The area is inhabited predominantly by affluent professionals and families who appreciate its blend of urban convenience and scenic beauty.

Strengths include great schools, shopping districts, and access to beaches and parks. However, the cost of living is high, and traffic can be a concern during peak hours.

Point Piper

This exclusive enclave near Sydney Harbour is known for having some of the most expensive real estate in Australia.

Properties in Point Piper are primarily expansive estates and sophisticated apartments. The average price per square meter in Point Piper is astronomical, partly due to the limited number of properties available.

Point Piper is home to celebrities and business moguls, attracted by its seclusion and elegance. The area boasts incredible views, a peaceful atmosphere, and proximity to Sydney's CBD.

However, it lacks local amenities like shops or schools within walking distance, and the exclusive nature can feel isolating for some.

Double Bay

A harborside suburb, Double Bay combines upscale living with a more relaxed atmosphere.

It's expensive, but you get a mix of stylish townhouses, modern apartments, and grand old homes. The average price per square meter in Double Bay is high, reflecting its popularity among the well-heeled.

Residents are a mix of older, wealthy families and young, successful professionals.

Double Bay's strengths are its vibrant cafe culture, shopping, and beach access. Weaknesses include parking difficulties and it can be crowded, especially on weekends.

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.

real estate market Sydney

Areas in Sydney that emerge as new hotspots

Let's explore these emerging neighborhoods in Sydney that, according to our local partners and our customers, are getting quite a bit of buzz lately.

Neighborhood Current Price Trend Property Type Resident Demographics Strengths Weaknesses
Marrickville Rising Diverse housing Young professionals, artists, families Food scene, arts culture Gentrification, infrastructure
Green Square Rising New developments Young professionals, eco-conscious residents Sustainability, modern amenities Still developing, lacks community feel
Alexandria Rising Warehouse conversions, apartments Families, professionals, creatives Proximity to city, food scene Limited green space, transitional


Initially a working-class area, Marrickville has evolved into a vibrant, multicultural hub.

It's becoming trendy due to its diverse food scene, arts and music culture, and relatively more affordable housing. The area attracts a mix of young professionals, artists, and families looking for a community vibe within reach of the city.

Property prices in Marrickville are cheaper than in established upscale neighborhoods but have been rising steadily. Strengths include its eclectic mix of cafes, markets, and live music venues.

Weaknesses are the ongoing gentrification which may erode some of its unique character, and some parts still lack modern infrastructure.

Green Square

Once industrial, Green Square is undergoing a major transformation into a modern, sustainable urban precinct.

Its growing popularity stems from new residential developments, improved transport links, and green spaces. Prices in Green Square are more affordable compared to traditional luxury areas, but are expected to rise as the area develops further.

It's popular among young professionals and environmentally conscious residents. The neighborhood's strengths are its sustainability focus and modern amenities.

However, it's still developing, so some parts lack the charm and established community feel of older suburbs.


Alexandria has transitioned from an industrial district to a trendy residential area.

It's popular for its warehouse conversions, contemporary apartments, and growing cafe culture. Prices in Alexandria are lower than in prime areas but are increasing due to demand.

The resident demographic is diverse, including young families, professionals, and creatives. Strengths are its close proximity to the city, vibrant food scene, and unique living spaces.

Weaknesses include a lack of green spaces and the transitional nature of the neighborhood as it continues to evolve.

Make a profitable investment in Sydney

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buying property in Sydney

Top neighborhoods in Sydney to invest in property

Areas in Sydney with a strong rental demand

If you're considering buying real estate in Sydney for renting it out, these neighborhoods with high demand for rentals should be considered.

Neighborhood Tenant Profile Property Type Average Rent Rental Yield Tips Weaknesses
Surry Hills Young professionals, creatives Modern apartments, heritage homes $600/week (1-bed) 3-4% Properties near Crown/Bourke streets Noise, competition
Parramatta Families, professionals Family homes, modern apartments $550-$700/week (3-bed) 3-5% Near station, university Oversupply in some areas
Bondi Beach Tourists, locals, expats Beach view apartments $500-$650/week (1-bed) 3-4% Near beach, modern amenities High prices, seasonal demand

Surry Hills

Surry Hills is a hotspot for young professionals and creatives, driving strong rental demand.

The area's vibrant cafe culture, proximity to the CBD, and eclectic mix of properties make it appealing. In Surry Hills, tenants typically seek modern apartments or unique heritage homes.

Rental incomes in Surry Hills are high due to the area's desirability, with one-bedroom apartments potentially fetching around $600 per week. The rental yield averages about 3-4% in Surry Hills.

Investors should focus on well-maintained or updated properties, ideally near popular streets like Crown or Bourke, to attract quality tenants. Downsides include competition and occasional noise issues due to the bustling nightlife.


Parramatta is popular among families and professionals due to its blend of suburban comfort and city amenities.

The demand for rental properties in Parramatta is fueled by its growing commercial sector and good schools. Tenants often look for family-sized homes or modern apartments close to transport links.

Rental income for a three-bedroom house in Parramatta can range from $550 to $700 per week, with a yield of around 3-5%. Investment in areas close to Parramatta Station or the University of Western Sydney can be particularly lucrative.

However, investors should be wary of areas with oversupply of new developments.

Bondi Beach

This iconic beachside suburb attracts a mix of tourists, locals, and expats.

The demand in Bondi Beach is for properties with ocean views or easy beach access. Studio or one-bedroom apartments in Bondi Beach are popular and can command rents of $500 to $650 per week. The average rental yield in Bondi Beach is around 3-4%.

Properties near the beach or Bondi Junction with modern amenities are ideal investments.

The downside is the high property prices and the seasonal nature of demand, with peak in summer.

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.

invest real estate in Sydney

Areas in Sydney where property prices might increase in the future

In these areas in in Sydney you can still find properties at a reasonable price, with room for appreciation as the neighborhoods develop.

Neighborhood Tenant Profile Property Type Average Nightly Rate Tips Weaknesses
Sydney CBD Business travelers, tourists Well-furnished apartments $150-$200 High-quality finishes, building amenities Noise, competition
Darling Harbour Tourists, families Harbor view properties $180-$250 Proximity to attractions, balconies Crowding during events, fluctuating demand
Manly Tourists, locals Beach access properties $200-$300 Near beach, unique features Seasonal market, higher maintenance

Sydney CBD

Sydney's CBD is a prime location for short-term rentals, appealing to business travelers and tourists.

They prefer modern, well-furnished apartments close to landmarks and transport. Amenities like Wi-Fi and a gym are highly valued. The average nightly rate in Sydney CBD is around $150-$200.

Investing in properties with high-quality finishes and in buildings offering facilities like a pool or gym can maximize returns.

However, the area can be noisy and the competition is fierce.

Darling Harbour

Darling Harbour is popular for its entertainment and waterfront attractions.

Short-term tenants in Darling Harbour are often tourists or families seeking properties with harbor views and easy access to attractions.

Nightly rates in Darling Harbour can range from $180 to $250. Properties with balconies or proximity to major attractions like the Sydney Aquarium are ideal.

The downside includes potential overcrowding during events and fluctuating demand outside peak tourist seasons.


Manly's beach vibe attracts a mix of tourists and locals looking for a short-term seaside escape.

They prefer properties with beach access or sea views. The average nightly rate in Manly is around $200-$300.

Investing in properties close to the beach or with unique features like a rooftop terrace can be profitable.

However, the market can be seasonal, and maintenance costs can be higher due to the beach environment.

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.

real estate market Sydney