Blog Sydney's 10 best suburbs for high capital growth

Sydney's 10 best suburbs for high capital growth

11 March 2021
Sydney's 10 best suburbs for high capital growth

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Sydney property prices rose 1% to start 2020, before COVID hit, sending prices down 2.9% between April and September. However, the New South Wales capital rebounded strongly and has had a red hot start to 2021. According to CoreLogic, property values rose 2.5% in Sydney in February, the strongest of any of the capital cities. Economists are tipping Sydney property prices to rise by as much as 10% this year, so what suburb should you be buying in? Find out the top 10 Sydney suburbs for high capital growth here.

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 from $1.16 million at the start of the year to $1.35 million by the end. Housing mostly families and older couples, it has a rental yield of 2.60%.

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 COVID. 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 of just $705,000.

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. Median house prices come in at $2.3 million with an average rental yield of 2.0%, while median unit prices come in at $952,500, with an average rental yield of 3.3%.

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. Currently, the median house price is $770,000, while the unit price is $450,000.

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 prices sit at just $687,000.

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 median house price sits at $1.485 million while units go for a smidge over $1 million.

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. The median house price is $1.96 million and the median unit price is $840,000.

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. The median house price for Miranda is $1.235 million.

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. Median prices are just $683,00 for houses and $368,500 for units.

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. Median house prices in Beacon Hill are $1,590,000.

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 one-year discount variable rate of 1.99% p.a. (2.47% p.a. comparison rate) when you refinance with us now. Check out how much you could save by refinancing with our calculator here.

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

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