Blog Sydney's 10 best suburbs for high capital growth

Sydney's 10 best suburbs for high capital growth

05 October 2021
Sydney's 10 best suburbs for high capital growth

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Sydney property prices have exploded in 2021, rising at their fastest pace ever. According to CoreLogic, Sydney dwelling values were up 19.8% in the year up to September, the second strongest capital behind Hobart. Steam has started to come out of the market with growth plateauing, but prices are forecasted to rise a further 5% this year.

So what suburb should you be buying in? Find out the top 10 Sydney suburbs for high capital growth as well as other information like median house and apartment price and rental yield here.

1. Bardwell Park

Bardwell Park is located 12 kilometres south of the Sydney CBD and sports easy access to the eastern suburbs, inner west, WestConnex, and Sydney airport. The suburb had a red hot 2020, with the median house price rising by almost $400,000 since the start of the year. Housing mostly families and older couples, the suburb is in high demand with limited stock available.

Median house price: $1.6 million

Median apartment price: N/A

Rental house yield: 2.3%

Rental apartment yield: 2.6%

2. Blacktown

Situated in Western Sydney, Blacktown is a popular suburb for owner-occupiers and investors alike. Blacktown saw double-digit growth in house prices from 2013 to 2018, and values remained steady throughout 2020. The region is set to see over $5 billion worth of infrastructure in coming years, and is an attractive prospect with a median house price over $200,000 below the Sydney average.

Median house price: $810,000

Median apartment price: $505,000

Rental house yield: 2.6%

Rental apartment yield: 3.8%

3. Narrabeen

This beachside suburb is perfect for those seeking a great work/life balance. Popular among young professionals and families, units in this Northern Beaches suburb saw growth of over 12% last year. Narrabeen is one of the more expensive Sydney suburbs and is in high demand, mostly among middle-aged professionals and families, displaying exponential growth in recent years.

Median house price: $3.5 million

Median apartment price: $1.12 million

Rental house yield: 1.6%

Rental apartment yield: 2.8%

4. Badgerys Creek

Located in south-west Sydney, Badgerys Creek is set to benefit from the nearly finished $9 billion Western Sydney airport. Combined with more than $15 billion in infrastructure to the area, the location is set to become a massive hub, driving house prices up. There’s little stock available on the market in the suburb so you’ll have to get in quick

Median house price: N/A

Median apartment price: N/A

Rental house yield: N/A

Rental apartment yield: N/A

5. Windsor

Just north of Sydney, on the banks of the Hawkesbury River, Windsor is a historic, leafy suburb, perfect for those who don’t mind the one hour train commute to the CBD. The working-from-home shift has made Windsor a much more attractive prospect for many Sydneysiders, with improvements to local infrastructure making the commute easier.

Median house price: $790,000

Median apartment price: N/A

Rental house yield: 3.0%

Rental apartment yield: 3.8%

6. Cherrybook

Cherrybook has boasted consistent capital growth in recent years, coupled with numerous high-value sales as a result of its affluent residents. The launch of the Sydney Metro Northwest rail link, house prices are expected to rise further. The suburb is dominated by older and established couples and their families, with bush views and lush lawns a plenty.

Median house price: $1.8 million

Median apartment price: $1.02 million

Rental house yield: 2.3%

Rental apartment yield: 2.7%

7. Avalon Beach

Avalon Beach is situated 37 kilometres north of the Sydney CBD and is another great location for those looking for a beachside work/life balance. The suburb was virtually untouched by the pandemic and has seen some of the strongest growth of any Sydney suburb in recent years. A new hospital and investment in roads will see this growth continue.

Median house price: $1.98 million

Median apartment price: $1.01 million

Rental house yield: 1.97%

Rental apartment yield: 2.48%

8. Miranda

Almost 24 kilometres south of the Sydney CBD, Miranda is known as a commercial centre for The Shire. However, with many people working from home, the location has grown in popularity due to its beaches and rivers. Unit construction has tripled in the last three years, and strong population growth and low unemployment should see solid opportunities for capital growth.

Median house price: $1.42 million

Median apartment price: $750,000

Rental house yield: 2.7%

Rental apartment yield: 3.4%

9. Mount Druitt

Mount Druitt is situated 38 kilometres west of the Sydney CBD and has perhaps undeservedly got itself a bad wrap in recent years. The region is undergoing a serious transformation, with $1.5 billion worth of infrastructure approved by the Federal Government. Apartments could be a bargain buy in Mount Druitt, with a relatively cheap median price point and solid rental yield.

Median house price: $774,000

Median apartment price: $425,500

Rental house yield: 2.8%

Rental apartment yield: 4.0%

10. Beacon Hill

Located in the Northern Beaches region, just 17 kilometres north-east of the Sydney CBD, Beacon Hill has seen its rental market tighten immensely as result of COVID. Planned infrastructure is set to make the commute simpler, and the work-from-home shift is likely to have more people consider the area. Beacon Hill is a high demand suburb with low rental stock so get in quick to avoid disappointment.

Median house price: $2.3 million

Median apartment price: N/A

Rental house yield: N/A

Rental apartment yield: N/A

Tips on buying for first and second home buyers

If you’re looking at buying a second home you may be able to access the equity in your home to do so by refinancing. We’re currently offering a two-year discount variable rate of 1.85% p.a. (2.21% p.a. comparison rate) when you refinance with us now. Check out how much you could save with our refinancing calculator.

If you’re a first home buyer, ensure the amenities in a suburb work for your circumstances as well as having capital growth opportunity. See how much you could borrow with us to buy your first home.

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