Seeking the best suburbs to invest in Sydney in 2024? Look no further than Western Sydney, a beacon for investment property Sydney opportunities.
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Should I invest in property in Sydney?
Investing in property in Sydney, especially in Western Sydney, has emerged as a golden opportunity for savvy investors. With Western Sydney’s suburbs blossoming into vibrant communities, the region is witnessing an unprecedented transformation. This guide explores why Western Sydney is at the heart of Sydney’s property investment landscape and how you can capitalize on its growth.
Why invest in Western Sydney?
Western Sydney is no longer just an extension of Sydney; it’s a dynamic and integral part of the city’s fabric. Known for its diverse community, Western Sydney offers a mix of urban living with the charm of suburban life. The region’s substantial development projects and government investments have catapulted Western Sydney suburbs into the spotlight for property investment in Sydney.
Western Sydney, encompassing numerous significant districts, continues its growth, development, and employment opportunities. This landscape offers a promising investment window in a city with a population exceeding 3 million residents in 2036, absorbing two-thirds of the population growth in the Sydney region.
As of 2022, Western Sydney is the quickest-growing region in Sydney, with a population surpassing 2.6 million is a cornerstone for potential investment properties Sydney. Given the dynamic and continuous growth seen in the city’s western sector, it has become apparent that directing investments in Western Sydney could potentially create substantial benefits if approached the right way.
Sydney’s Western area has been undergoing significant developments, coupled with enhancements and expansion in infrastructure. Together, this has driven up the demand for increased apartments and housing projects to accommodate the growing population.
The NSW government has allocated $3 billion for utilisation by various NSW government agencies, aimed at executing projects that would make an impactful benefit and will bring advantages to local communities in Western Sydney.
An additional $2 billion has been allocated to Community Project Grants, which intend to enhance areas of greenery, community infrastructure, modernised educational institutions such as schools, as well as cultural amenities.
It is definitely worth saying that West is, indeed, best for investors.
The Growth of Western Sydney Suburbs
Western Sydney’s growth is fueled by several factors, including affordability, the rise of infrastructure, and a booming population. Suburbs like Parramatta and Blacktown are becoming the best suburbs to invest in Sydney, thanks to their economic development and connectivity.
Here are 3 reasons why Western Sydney stands out as one of the best suburbs to invest in Sydney:
1. A Strong Economy and Infrastructure
Western Sydney have been undergoing substantial urban development and infrastructure projects, such as numerous modernised and convenient transportation links, amenities and roads making it a fertile ground for Sydney investment property. This could potentially attract more businesses and residents, driving demand for property and increasing property values.
Western Sydney is home to a diverse and growing economy, with several major industries, including manufacturing, healthcare, and education. The region is also well-served by infrastructure, including a major airport, motorway network, and rail system. This makes it an attractive place for businesses to invest and operate, which in turn creates jobs and supports economic growth.
In 2020, the Western Sydney economy was worth over $100 billion. This was larger than the economies of several Australian states, including Tasmania and South Australia. The region is expected to continue to grow strongly in the coming years, with an annual growth rate of around 3%.
Western Sydney is also well-served by infrastructure. The recently launched $5 billion WestInvest program is instrumental in funding and executing transformative projects, benefiting communities and boosting job creation across Western Sydney.
To support these endeavours, the NSW Government has earmarked $3 billion for NSW Government agencies to implement transformational projects that will directly benefit local communities.
An additional $2 billion has been allocated to Community Project Grants, intended to enhance green spaces, bolster community infrastructure, modernise schools, promote arts and cultural facilities, activate high streets, and improve local traffic programs.
Among the numerous billion-dollar projects currently underway, Western Sydney Airport stands as a noteworthy flagship development.
The Nancy Bird Walton Airport is scheduled to be up and running by 2026. The newly-built airport comprises both national and international flights and will be a great powerhouse when it comes to the Australian economy, as well as provide thousands of employment opportunities to the Western Sydney area.
The new Western Sydney Airport will be a state-of-the-art gateway to the world, able to transport over 10 million passengers every year.
Powerhouse Museum – Parramatta
Another upcoming project is The Powerhouse Museum, set to be the largest cultural investment since the Sydney Opera House, boasting 18,000 square meters of exhibition and public space. The museum is expected to attract up to 2 million visitors every year.
The ongoing infrastructure developments in Western Sydney solidify its position as one of the best suburbs to invest in the Sydney region.
2. Affordable Property Prices and Strong Rental Demand
Property prices in Western Sydney are still relatively affordable compared to other parts of Sydney. This makes it an increasingly popular destination for investors attracted by the potential for capital growth and rental returns.
In 2023, the median house price in Western Sydney was $730,000. This was significantly lower than the median house price in Sydney as a whole, which was $1.3 million.
Property prices in Western Sydney are expected to continue to grow in the coming years, with an annual growth rate of around 7%, according to SQM research. This is due to several factors, including strong population growth, infrastructure investment, and government support.
The affordability of Western Sydney is making it an increasingly popular destination for first-home buyers and investors. According to the REIA Quarterly Property Market Report for September 2023, first-home buyers accounted for 35% of all new home purchases in Western Sydney in 2023. This was up from 25% in 2022.
Investors are also attracted to Western Sydney by its strong rental demand and rental yields. The average gross rental yield in Western Sydney is 5.50% (SQM Research). This is higher than the average gross rental yield in Sydney as a whole, which is 4.50%.
Western Sydney is a great option if you are looking for an affordable place to buy property. The region offers a variety of housing options, strong rental demand, and good rental yields.
3. A Combination of Employment Hub, Amenities and World Class Education
A Thriving Employment Hub
Western Sydney is a thriving employment hub with a strong and resilient economy. The region has experienced a steady decline in unemployment rates over the past few years, with the current rate sitting at 5.0%, below the national average. This positive trend is expected to continue, with forecasts predicting a further drop to 4.5% by 2030.
Driving this growth is the region’s diverse range of industries, including manufacturing, healthcare, education, and retail, along with a significant presence in the logistics and transportation sectors. With over 980,000 jobs and the prospect of creating an additional 100,000 by 2030, Western Sydney presents many employment opportunities, particularly in healthcare, education, logistics and transportation.
A Liveable Region with Excellent Amenities
Western Sydney is a great place to live, with various amenities to suit all lifestyles. The region has a number of parks and gardens, as well as a growing number of restaurants, cafes, and bars. Western Sydney also has several major sporting and cultural venues, including the Sydney Olympic Park and the ANZ Stadium.
The region is also well-connected to the rest of Sydney by public transport. The T1 Western Line and the T5 Cumberland Line provide rail services to the Sydney CBD, while the M4 Motorway and the M7 Motorway provide easy access by car.
A Hub of Excellence in Education and Healthcare
Western Sydney is a hub for outstanding educational institutions, including Western Sydney University, Macquarie University, and the University of Western Sydney.
Western Sydney University
These esteemed establishments offer diverse educational pathways, spanning from vocational training to advanced postgraduate studies. Furthermore, Western Sydney boasts a robust infrastructure of hospitals, medical centres, and healthcare facilities, ensuring accessible and high-quality healthcare for its residents.
The region hosts a network of world-class healthcare facilities, such as Westmead Hospital, Blacktown Hospital, and Campbelltown Hospital. These institutions provide comprehensive healthcare services, ranging from emergency care to specialised treatments.
Western Sydney’s unwavering commitment to education and healthcare underscores its dedication to the well-being of its residents, positioning itself as a pivotal force in shaping a healthier and more prosperous future for all.
Western Sydney is a great place to buy property, with affordable house prices, a strong economy, and various amenities. The region is also a great place to live, with a diverse and vibrant community. If you are looking for a place to buy property in Sydney, Western Sydney is definitely worth considering.
4. Best Suburbs to Invest in Sydney West
Parramatta: The Crown Jewel
Parramatta, one of Sydney’s best suburbs to invest in, is located just 25 kilometres west of Sydney’s CBD. Parramatta is a city at the crossroads of Global Sydney, offering accessibility with a 30-minute train ride to Town Hall Station.
Parramatta’s economic growth and status as a leading financial hub position it as a top choice for investment property Sydney. With property prices surging by 11.3% last year and rents growing by 28%, Parramatta embodies the potential for investors seeking investment properties Sydney.
According to a recent PwC report, Parramatta’s economic growth is set to nearly double in the next five years, positioning it to become a leading financial hub. Parramatta is a thriving hub for employment with a population exceeding 257,000 and consistent growth.
Its educational institutions, with a higher percentage of the population holding bachelor’s degrees compared to Greater Sydney, prepare the workforce for the future. Additionally, Parramatta boasts a substantial Gross Regional Product, making it the second-largest economy in NSW after Sydney’s CBD, reaffirming its status as an investment-worthy destination in Western Sydney.
Image: Parramatta Suburb Profile – Property Mash
According to SQM, Parramatta’s property prices have surged by 11.3% in the last year, while rents grew by an impressive 28%. This data highlights Parramatta’s strong potential as an investment property market, making it an attractive choice for investors.
Fairfield: The Hidden Gem
Fairfield is home to over 18,000 residents and has built itself to be a vibrant community in Western Sydney. The suburb has grown over the last decade, with Census data showcasing an impressive population surge.
An increase in accommodation rental indicates a growing investor market and increased interest in Fairfield’s properties. According to the ABS, 46.9% of Fairfield properties were rented in 2006. Ten years later, in 2016, the suburb transformed into a majority renting arrangement, with 55% of properties being rented, indicating a growing investor market.
With low vacancy rates and impressive performance, Fairfield’s property market offers great potential for investors. Over the past 12 months, property prices have surged by 14%, and rent has seen a remarkable growth of 27.8%. This data underscores the city’s attractiveness as a thriving investment property market.
Fairfield’s transition to a majority-renting suburb indicates a vibrant investor market. With property prices and rent seeing substantial growth, Fairfield stands out as a promising Sydney investment property location.
Source: SQM Research
St Marys: Thriving Growth and Investment Opportunities
St Marys is home to a diverse and rapidly growing community, reflecting the multicultural hotspot of the Western Sydney region.
Located just 9km from Penrith CBD, 26km from Parramatta CBD, and 47km from Sydney CBD, the suburb attracts residents seeking a balance between urban amenities and a more relaxed suburban lifestyle. With its strategic position, St Marys has become a melting pot of cultures, fostering a vibrant and inclusive community.
St Marys Population Forecast
Source: TfNSW 2020; Prepared by Urbis
The suburb’s accessibility to key employment hubs and efficient public transport infrastructure further contribute to its popularity among many residents. The substantial population growth, projected at 4.3% per annum from 2021 to 2036, underscores the increasing appeal of St Marys.
This growth is fueled by factors such as the town centre’s rising density and enhanced connectivity, particularly with the new airport, making it an area of dynamic demographic change and promising investment opportunities.
St Marys, with its substantial population growth and strategic location, presents numerous investment property Sydney opportunities. Its role in connecting key employment hubs and providing access to urban amenities makes it a prime choice for investors.
Investment Opportunities in Western Sydney
Discovering the Best Suburbs to Invest in Sydney
When considering investment properties in Sydney, it’s essential to look at Western Sydney. With high rental yield suburbs in NSW and capital growth suburbs in Sydney predominantly located in this region, investors have a lucrative opportunity to maximize their returns.
- Affordable Investment Options: Compared to Sydney’s eastern parts, Western Sydney offers more affordable investment opportunities. Buying an investment property in Sydney’s western region means accessing lower entry points with high growth potential.
- High Rental Demand: Western Sydney’s rental yields are among the highest in the city. Suburbs like Parramatta and Liverpool offer strong rental markets, making them the best places to buy investment property in Sydney.
Navigating Sydney’s Property Market
Understanding Sydney’s property market dynamics is crucial for making informed investment decisions. Investment property interest rates, Sydney’s average rental yield, and best investment property locations in NSW play significant roles in shaping your investment strategy.
Making Strategic Decisions
Fixed vs Variable Rate Mortgages
Choosing between fixed-rate mortgage and variable rate mortgage can significantly impact your investment’s profitability. With interest rates on investment property fluctuating, understanding the pros and cons of each option is vital.
- Fixed Rate Mortgage: Offers stability and predictability, crucial for long-term investment planning in Sydney’s property market.
- Variable Rate Mortgage: Provides flexibility and potential savings if interest rates drop, but comes with the risk of increasing rates.
Preparing for Rising Interest Rates
With interest rates rising, investors need to be strategic. Here are five tips to navigate this challenge:
- Know Your Interest Rate: Stay informed about the current rates and forecasts for interest rates on investment property.
- Make Extra Repayments: When possible, pay more than the minimum to reduce your principal faster.
- Consider Refinancing Your Loan: Explore options for lowering mortgage rates through refinancing.
- Build a Buffer in Your Offset Account: Prepare for unforeseen circumstances by saving extra funds.
- Ensure Stability in Your Rental Properties: Focus on retaining good tenants to maintain steady rental income.
Leveraging Interest Rates to Your Advantage
Capitalizing on High-Interest Rates
While high interest rates can be challenging, they also present opportunities:
- Strong Rental Performance: As buying becomes less affordable, demand for rentals increases, boosting investment property Sydney’s rental income.
- Better Buying Power: Reduced competition in the market can lead to better deals on investment properties Sydney.
- Greater Tax Deductions: Higher interest rates mean larger deductions for property investors.
Finding the Best Interest Rates
When looking for the best interest rates for investment property, research and comparison are key. Utilize tools and consult experts to find the most competitive rates for your investment property in Sydney.
Bottom Line
In summary, Western Sydney suburbs hold the promise of investment success by providing a potential for capital appreciation, economic growth, and diverse opportunities.
Western Sydney stands as a beacon for those looking to invest in Sydney property. With its affordable prices, strong rental demand, and vibrant communities, it’s no wonder why it’s considered one of the best places to invest in property. By making informed decisions and strategic moves, investors can navigate Sydney’s property market successfully, turning challenges into opportunities for growth and profitability.
With its strategic location, demographic diversity, and ongoing government investment, this region remains a lucrative prospect for those looking to secure their financial future through property and business investments.
It is essential for investors to conduct thorough research and consider the local real estate market trends, economic factors, and potential risks before making any investment decisions.
Becoming an investor may seem like a daunting task. However, the team at St Trinity are here with you step by step.
Are you looking into purchasing property in Western Sydney?
If so, our team of professionals at St Trinity will guide you through the entire process.
Contact our team at (02) 9099 3412.
