2021 Investment Property Review: Where are the Best Suburbs in Sydney?

The interest in investment properties across Sydney’s suburbs seems to grow every year; 2021 is no different. As Australia’s most populous city, it’s unsurprising that there is a steady demand for residential and commercial properties across the city. While on the surface it may seem that investment properties in sydney are easy to come across, the profitability and demand for commercial/residential properties differ among suburbs. This is not to diminish the consistency and strength of the Sydney property market, however, property investors should know what the best suburbs in Sydney to invest in are.

Why should property investors take notice of the best suburbs to invest in Sydney in 2021?

At Cite Group, we consistently keep an eye on best suburbs to invest in Sydney, however, 2021, is of particular interest. Though this article is primarily focused on suburbs within Sydney, factors occurring at the national level have, predictably, impacted the city. 

According to Reuters, here’s why Australia’s economic growth in 2021 is projected to be extremely strong:

• Successful defence against the pandemic;
• Slow contraction of the economy in 2021;
• Earlier reopening of the economy due to successful defence against the pandemic;
• Recovery of all 878,000 jobs lost during the lockdown; and
• Slashed cash rate by the Reserve Bank Australia (RBA) leading to low interest rates (implemented as an economic stimulant by the RBA).

The above factors also lay the foundation for a strong property market. As the economy grows strong, more people become employed and more businesses start/expand; this coupled with stimulants such as the reduced cash rate, make it easier for people and businesses to purchase/rent both commercial and residential properties.

As mentioned previously, the pandemic was a significant hurdle for many Sydneysiders, however, many potential buyers have been roped back in through low interest rates (caused by the RBA’s reduction in the cash rate), government tax cuts, JobKeeper (prevented a massive loss of income and savings, allowing for quicker personal economic recovery) and more. 

Now that we’ve solidified the country and state’s comeback, let’s now take a look at investment on a micro-level. Sydney is a large, complex city with suburbs that aren’t all developed equally. So, which of Sydney’s suburbs are best for investment?

5 best suburbs in Sydney for property investment in 2021

Based on our analysis of these suburbs, property investors should note a few things for 2021. First, renters and buyers are moving away from units and throwing their demand behind houses in the majority of our mentioned suburbs. Second, inner-city and inner-west suburbs are less in demand this year than those further away from Sydney because of the pandemic which saw a rise in remote working.

While there is little doubt that the demand for suburbs close to the city will return, for now, property investors can benefit from purchasing and developing properties in the above-mentioned suburbs.

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