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The following article by MadeComfy co-founder Sabrina Bethunin was originally published in the 2019 Hostfully Hospitality Trends in Vacation Rentals Report.
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10 best suburbs to invest in Sydney 2019

What are Sydney’s best suburbs to invest in for Airbnb properties? 

A reflection of Australia’s booming tourism industry, Sydney has seen tremendous growth in the average number of Airbnb bookings and associated revenue over the past two years.

In this article, we break down the top 10 Sydney suburbs for short-term rental property investment for houses and apartments in 2019, based on number of booking volume and occupancy rate during the city's peak accommodation season.

Interested in researching Sydney's short-term rental and Airbnb for property investment in more detail? Get a FREE copy of our Sydney Short-Term Rental Report using the link below.

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Growing demand for short-term rental accommodation

Sydney is the most visited city in Australia, followed by Melbourne and Brisbane. The capital of New South Wales has maintained its popularity and growth in the number of visitors, resulting in an increase in demand for short-term rental accommodation.

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Seasonality

The popularity of Airbnb properties fluctuates with the change in seasons as visitors seek different experiences from their visit.

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In the colder winter months, the suburbs with the highest occupancy rates are centralised around the CBD and inner west of Sydney, where there are trendy cafes and tourism hotspots such as the Harbour Bridge and Opera House, and as well as easy accessibility to the city.

On the other hand, during December, January and February when the warm summer weather attracts many visitors bounded for the Australian surf, an obvious shift in demand occurs as properties towards the coastal regions like Manly, Bondi and Coogee become more popular among families and tourists.  

 

Most Popular Type of Property Screen Shot 2019-10-11 at 4.33.41 pm

Source: AirDNA, 2019

There are also slight differences in the popularity of housing depending on property type. In general, regardless of season, apartments have a comparatively higher rate of occupancy when compared to houses. In particular, residences with one or two bedrooms are most in demand.

 

Top Suburbs in Winter

1. Chippendale 

Chippendale's short-term rental stock features a variety of converted warehouse apartments, terraces and studios. 

The suburb's close proximity to Sydney CBD and its cutting edge creative scene make this suburb a hub for a diverse range of travelers and visitors.

Median Apartment Prices:

  • 1 Bedroom – $620,000

  • 2 Bedroom – $812,500

Occupancy Rate: 78% (Winter, 2019)  

Heritage_Warehouse_Apartment_in_Port_MelbourneScreen Shot 2019-10-11 at 4.37.42 pm

   

2. Redfern 

Despite recent developments in multi-level apartments and gentrification over the past few years, the remaining Victorian style terraces preserve Redfern's edgy and historic vibe. Students are often spotted visiting chic local cafes, and commuting to and from, the nearby University of Sydney.

Redfern station is only a stop away from Sydney’s largest train station, Central, and thus location is the key reason why this suburb is always popular among airbnb guests in Sydney.

Median Apartment Prices:

  • 1 Bedroom $610,000

  • 2 Bedroom $945,000

  • 3 Bedroom $1.21m

Occupancy Rate: 78% (Winter, 2019)  

Screen Shot 2019-10-11 at 4.43.26 pm

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3. Haymarket

Areas in and around Haymarket are considered one of the busiest in Sydney. Haymarket is a place for social gathering and it is a leisurely stroll away from Darling Harbour, and it is home to Sydney's Chinatown, Capitol Theatre, and Paddy's Market. Located right next to Central station, the Haymarket area is popular for travelers looking to stay in next to Sydney's largest transpot hub.

Median Apartment Prices:

  • 2 Bedroom $1.07m

Occupancy Rate: 74% (Winter 2019)

Paddys_markets_sydney

Screen Shot 2019-10-11 at 4.45.52 pm

 

 

 

  

 

4. Darlinghurst

Median Apartment Prices:

  • 1 Bedroom $652,500

  • 2 Bedroom $1.2m

  • 3 Bedroom $1.77m

Occupancy Rate: 73% (Winter 2019)  

Rainbow_Crossing_on_Campbell_Street_in_Surry_Hills

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5. Woolloomooloo

Woolloomooloo is renowned for its Finger wharf where locals and tourists alike spend time at trendy bars overlooking the water view.

It is particularly suitable for a relaxed evening with friends or meeting new people.

Median Apartment Prices:

  • 1 Bedroom $683,500

  • 2 Bedroom $1.2m

Occupancy rate: 72% (Winter, 2019)  

Screen Shot 2019-10-11 at 4.59.56 pm

Sydney_looking_towards_Woolloomooloo_and_the_CBD

 

 

 

 

 

Top 5 Suburbs in Summer

1. Bondi

With a world famous beach, Bondi is the top region in Sydney for Airbnb rental demand over the Summer in Sydney. 

A variety of accommodation types, from small units to large properties used by groups and families, are popular over the summer period.


Average Occupancy Rate: 77% (Summer 2018/2019)  

bondi airbnbbondi-2

 

 

 

 

 

 

 

 

 

 

 

2. Manly

Accessed from the CBD by one of the most picturesque ferry rides in the world, Manly is a buzzing beachside hub of cafes, restaurants and street markets over the summer. 

Occupancy Rate: 79% (Summer 2018/2019)  

manly airbnbmanly-1

 

 

 

 

 

 

 

 

 

3. North Sydney 

With some of the best views of Sydney, numerous properties in North Sydney are a walk away from the undisturbed views of  Harbour Bridge and Opera house. Sydney's famous Luna Park is also located in North Sydney and is a popular attraction for many out of city visitors.  

The ease of access to popular locations via train, bus or ferry makes it an even more sought after location for short term renters.

Median Apartment Prices:

  • 1 Bedroom $652,500

  • 2 Bedroom $1.2m

  • 3 Bedroom $1.77m

Occupancy Rate: 77% (Summer 2018/2019)  

North_Sydney_Olympic_PoolScreen Shot 2019-10-11 at 4.53.49 pm

 

 

 

 

 

 

 

 

 

 

In terms of house price growth, Australian real estate agent comparison site OpenAgent, are predicting a shift in Sydney's property market from 2020, partly due to the effect of loosening lending serviceability requirements, further downward interest rate pressure from the RBA and new comprehensive credit reporting schemes requiring banks to share credit report data.

 

4. Coogee

Another beachside suburb, Coogee, is a popular location for families during the summer holiday seasons as Coogee beach is renowned for its safe swimming conditions. Furthermore, its close proximity to the Sydney CBD makes it a popular location for visitors who want to experience both the city and beachside lifestyle. 

Median House Prices:

  • 3 Bedroom $2.32m

  • 4 Bedroom $2.57m

Occupation Rate: 74% (Summer 2018/2019)  

Coogee_Beach_view_from_Dolphin_PointScreen Shot 2019-10-16 at 4.16.24 pm

 

5. Surry Hills 

Surry hills is an inner city suburb which features a mixtures of residential, commercial, and light industrial areas. It is a suburb of diversity, which has inspired a wide variety of local cafes and bars throughout the region. 

Surry Hills is also the proud host of the monthly Surry Hills Markets and annual Surry Hills Festival, which attracts tens of thousands of visitors to the area. 

Median House Prices:

  • 2 Bedroom $1.23m

  • 3 Bedroom $1.667m

  • 4 Bedroom $ 1.875m

Occupancy Rate: 80% (Summer 2018/2019)  

Screen Shot 2019-10-16 at 4.09.50 pm

surry hills airbnb

 

 

 

 

 

 







(all data regarding median property price is sourced from realestate.com.au, and occupancy rates were provided by Airdna) 

 

Ask an Airbnb expert: want more information about short-term rental in Australia? Submit your question to the MadeComfy team below.

 

 

More Sydney suburb profiles for property investment

 

Surry Hills

Surry Hills-1

Surry Hills is a quaint suburb close to the heart of Sydney CBD. 

It’s streets are lined with 19th century Victorian terrace houses, dotted with modern cafes, pubs and restaurants.

Even though Central Station is closeby, residents can easily walk to major attractions like Chinatown, Darling Harbour and Broadway. 

Surry Hills is great for investors looking for a quiet neighbourhood while still being close to the main attractions and services of Sydney.

  • Transport: Central station. 
  • Points of interest: Cafes, pubs, restaurants, and art galleries.
  • Median House Price: 2 rooms $1.2m; 3 rooms $1.73m.
  • Median Apartment Price: 1 room $723k, 2 rooms $1.02m, 3 rooms $2.3m.

Chippendale

Chippendale

Like Surry Hills, Chippendale is a quiet suburb with boutique terrace houses in narrow streets.

For residents who love shopping, Central Park Mall and Broadway Shopping Center are conveniently closeby.

Chippendale is particularly popular for students since UTS and the University of Sydney are literally a stone's throw away. 

If you’re looking to invest in Chippendale, consider apartments as they have the highest occupancy rate during summer and winter compared to other Sydney suburbs.

  • Transport: Central station, Redfern station and buses. 
  • Points of interest: Central Park Mall, Broadway Shopping Centre, UTS, University of Sydney, and Spice Alley.
  • Median Apartment Price: 1 room $670k, 2 rooms $1.123m

Haymarket

Haymarket

Haymarket is a lively hub close to Central Station. 

With Chinatown, Paddy’s Markets and various discount outlets in the suburb, the Asian community is naturally drawn to Haymarket. 

High rise apartments and newly developed residential complexes provide additional vacancy for the increasing Asian population in Sydney.

In 2018, Haymarket had the third highest occupancy rate at 66% during the summer.

During winter, it had the second highest occupancy rate at 74%. 

  • Transport: Central station and Paddy’s Markets light rail.
  • Points of interest: Chinatown, Market City, Paddy’s Markets.
  • Median Apartment Price: 1 room $744k, 2 rooms $1.35m.

Darlington

Darlington

Darlington is a small suburb with a large area covered by University of Sydney complexes.

It's surrounding streets are lined with terraces, perfect for students.

This is one of the reasons why Darlington terraces and houses have the highest average occupancy rate during winter at 72.6%.

  • Transport: Redfern Station
  • Points of interest: University of Sydney and Broadway Shopping Center.
  • Median Price: No data.

North Sydney

North Sydney

North Sydney is a popular location for business offices as it overlooks the iconic Harbour Bridge and Sydney skyline. 

Average occupancy rates are consistently high throughout the year because of its prime harbour location.

Property investors can expect to pay around $2 million for a house and over $1 million for an apartment with water views in this prestigious area.

Despite being outside the CBD, North Sydney still has a lively atmosphere, with most major services within its vicinity. 

  • Transport: North Sydney and Milsons Point train station.
  • Points of interest: Luna Park and Sydney Harbour Bridge.
  • Median House Price: 3 rooms $1.981m.
  • Median Unit Price: 1 room $688k, 2 rooms $1.16m, 3 rooms $1.75m. 

Maroubra

Maroubra

Maroubra is a beachside suburb located in the southernmost part of the Eastern Suburbs of Sydney, about 10 kilometres south-east of the Sydney CBD.

It has a quiet, spacious and family-friendly beach stretching over a 1.1km.

This is ideal for investors looking for apartments to lease out during summer, as Maroubra has an average occupancy fill rate of 64.5% during this period.

  • Transport: Buses Only - Maroubra Junction, Maroubra Beach stations.
  • Points of interest: Maroubra Junction, Maroubra Beach, UNSW Sydney, Coogee Beach and Kingsford Smith Airport.
  • Median House Price: 2 rooms $1.425m, 3 rooms $1.7m, 4 rooms $2.141m.
  • Median Apartment Price: 1 room $640k, 2 rooms, $833k, 3 rooms $1.07m.

Coogee

Coogee

One of Australia’s oldest beachside suburbs, Coogee, has a mixture of apartments and beach houses.

The suburb is ideal for residents who prefer coastal living, without the touristic attention like Bondi. 

During summer, houses have an average occupancy rate of 61.7%, while apartments are at 64.5%.

  • Transport: Bus Only - Coogee Bay Rd.
  • Points of interest: Coogee Beach, Coogee Pavilion, Bondi to Coogee walk, Gordon’s Bay, Maroubra Beach, Maroubra Junction, and UNSW Sydney.
  • Median House Price: 3 rooms $2.2m, 4 rooms $2.95m.
  • Median Apartment Price: 1 room $733k, 2 rooms $958k, 3 rooms $1.5m.

Manly

Manly

Manly is one of the most popular north shore coastal suburbs near Sydney.

The area attracts both families and young adults who prefer a casual lifestyle near the beach.

It’s for this reason, Manly has a higher average occupancy rate during summer at 63.9%.

  • Transport: Ferries to Manly Wharf.
  • Points of interest: Manly Beach, Shelly Beach, The Corso and Manly to Spit Bridge Coastal Walk.
  • Median House Price: 3 rooms $2.4m, 4 rooms $3.5m.
  • Median Apartment Price: 1 room $803k, 2 rooms $1.3m, 3 rooms $2.1m.

Newtown

Newtown

Newtown is one of the more unique inner-west suburbs, just on the edge of Sydney CBD. 

You’ll find terraces and low-rise apartments in the back alleys, however, Enmore Rd and King st are the main attractions in this suburb.

Both streets are lined with boutique restaurants, cafes, shops and the odd artwork on inside walls.

Being so close to the University of Sydney, Newtown is popular amongst students during summer and winter.  

  • Transport: Newtown station and buses.
  • Points of interest: Holey Moley Golf Club, Enmore Theatre, and University of Sydney.
  • Median House Price: 2 rooms $1.1m, 3 rooms $1.5m, 4 rooms $1.5m.
  • Median Apartment Price: 1 room $619k, 2 rooms $869k.

Rozelle

Rozelle

Across the ANZAC Bridge, you’ll find the prestigious suburb Rozelle. 

This outlying district has a mix of luxury apartments and Victorian terraces, although many have undergone detailed renovations to match the upper class location.

You’ll find most cafes, restaurants and shops along Darling St, with the Rozelle Markets as a main attraction on weekends.

If you’re looking to invest in this area, consider a house or terrace as they have higher average occupancy rates during winter at 64.2%

  • Transport: Rozelle Bay light rail station and buses.
  • Points of interest: ANZAC Bridge, Rozelle markets, Bay run trail, King George Park, and Fish Markets.
  • Median House Price: 2 rooms $1.2m, 3 rooms $1.5, 4 rooms $2.1m.
  • Median Apartment Price: 1 room $763k, 2 rooms $1.3m.

Balmain

Balmain

Right next door to Rozelle, Balmain shares similar characteristics with apartments and terraces lining its streets. 

But it does have one appealing feature over it’s neighbour... 

Properties on the northern side of Balmain have incredible views of the Sydney Harbour Bridge. 

Balmain also has a higher average occupancy rate during summer, at 62.1%.

  • Transport: Balmain Wharf for ferries and buses.
  • Points of interest: Elkington Park, Balmain Hospital, Sydney Harbour Boat Storage, ANZAC Bridge,  International Convention Centre Sydney, Darling Harbour Sydney.
  • Median House Price: 2 rooms $1.3m, 3 rooms $1.8m, 4 rooms $2.6m.
  • Median Apartment Price: 1 room $720k, 2 rooms $980k.

Fairlight

Fairlight

Fairlight is a small suburb north of Sydney with a mix of houses and apartments. 

It doesn’t receive the same attention from tourists as its neighbour Manly, but it is still in a prime location close to the water.

Guests can relax at Fairlight Beach, enjoy a few rounds of golf at Manly Golf Club, or trek along Fairlight Walk for ocean views.

If you’re looking for an Airbnb property, Fairlight houses are a better option for occupancy fill rates, particularly during summer.

  • Transport: Manly Wharf ferries and buses.
  • Points of interest: Manly Beach, The Corso and Manly to Spit Bridge Coastal Walk.
  • Median House Price: 2 rooms $1.8m, 3 rooms $2.1m, 4 rooms $2.6m.
  • Median Apartment Price: 2 rooms $990k, 3 rooms $1.89m.

Randwick

Randwick

Randwick is located in the Eastern suburbs, with house rentals being more popular during summer, while apartments are preferred during winter.

It is close to some of the most popular beaches in Sydney, including Bondi, Bronte, Clovelly and Coogee.

With the Royal Randwick Racecourse being another major attraction, it’s easy to see why over 13 million tourists visit this area each year.

  • Transport: Bus only: Royal Randwick Shopping Centre, Belmore Rd
  • Points of interest: Royal Randwick Racecourse, Ritz Cinema, Prince of Wales Hospital, Coogee Beach, Coogee Pavilion, Bronte Beach, Bondi to Coogee walk, Gordon’s Bay, UNSW Sydney
  • Median House Price: 3 rooms $2.1m, 4 rooms $2.5m, 5 rooms $3.3m.
  • Median Apartment Price: 1 room $671k, 2 rooms $915k, 3 rooms $1.5m.

Redfern

Redfern

Redfern has a history of poverty but the state government, in recent years, have invested heavily to redevelop this small suburb.

Located close to the University of Sydney, Redfern’s streets are mostly lined by terraces.

However, the few apartments available are more popular and have higher occupancy rates throughout the year compared to houses. 

Redfern Medium apartments prices are also slightly lower compared to its neighbour Surry Hills.

  • Transport: Redfern Station, Central Station and buses.
  • Points of interest: Redfern Park, The Entertainment Quarter, The Sydney Cricket Ground, Carriageworks, Sydney Central Station
  • Median House Price: 2 rooms $1.2m, 3 rooms $1.7m, 4 rooms $1.9m.
  • Median Apartment Price: 1 room $665k, 2 rooms $945k, 3 rooms $1.35m.

Leichhardt

Leichhardt

Best known for its Italian community, Leichhardt is a popular inner west suburb for residents and businesses.

Locals generally congregate on Norton St where you’ll find shops, cafes and authentic Italian restaurants (amongst others).

If you’re looking to invest in this area, consider houses as they have a higher occupancy fill rate compared to apartments throughout the year.

  • Transport: Leichhardt North, Hawthorne and Marion light rail station and buses.
  • Points of interest: Pioneers Memorial Park, Palace Norton Street, Annual Italian Festa Food Festival, The Italian Forum restaurants and cafes. 
  • Median House Price: 2 rooms $1.1m, 3 rooms $1.4m, 4 rooms $1.8m.
  • Median Apartment Price: 1 room $615k, 2 rooms $810k.

Pyrmont

Pyrmont

Pyrmont is one of the liveliest districts in Sydney.

With Darling Harbour closeby, guests have plenty of options for entertainment, especially on weekends.

There are a few terraces in the backstreets, but most blocks are lined with apartments that offer views of Sydney Harbour. 

If you’re looking to invest in Pyrmont, consider buying an apartment as it has a 63.7% average occupancy fill rate during winter.

  • Transport: Pyrmont Bay, The Star, John Street Square, Fish Market and  Wentworth Park light rail.
  • Points of interest: Darling Harbour, International Convention Centre Sydney, Sydney Fish Market, The Star Casino and Australian National Maritime Museum. 
  • Median Apartment Price: 1 room $700k, 2 rooms $1.2m, 3 rooms $2.9m.

Woolloomooloo

Woolloomooloo

Wooloomooloo is primarily populated with terraces and low rise apartments.

While it’s still close to Sydney CBD, huge parklands and the Royal Botanic Gardens separate Wooloomooloo from the scurry of city life.

For nightlife activities, the neighbouring suburb Kings Cross has a number of popular clubs, pubs and restaurants.

Apartments in this area typically have a higher occupancy fill rate during winter.

  • Transport: Kings Cross station and buses.
  • Points of interest: Finger Wharf fine dining and hip bars, The Old Fitz Theatre, Cook + Phillip Aquatic Centre, Art Gallery of New South Wales, St Mary’s Cathedral, Royal Botanic Gardens, Australian Museum.
  • Median Apartment Price:1 room $770k, 2 rooms $1.3m.

Bondi

Bondi Beach

Bondi is a very small suburb in Sydney's east coast, however, it’s one of the most iconic attractions in Sydney amongst tourists.

With Bondi Beach at centre stage, the streets can get crowded on sunny days, as surfers chase the next big wave.

Because of this, average occupancy rates are consistently high during winter and summer, sitting at 60% and 26.2% respectively.

Most houses and apartments have ocean views so you can definitely expect premium valuations for properties in Bondi.

  • Transport: Bondi Junction station, Bondi Beach buses only.
  • Points of interest: Bondi Beach, Bondi to Coogee walk, Icebergs ocean pool, Hall Street pubs, cafes and shops. Bondi Junction.
  • Median House Price: 4 rooms $2.8m.
  • Median Apartment Price: 1 room $775k, 2 rooms $1.1m, 3 rooms $1.5m.

Sydney CBD

Sydney CBD

Sydney CBD is certainly a prime location for investors and you won’t find any houses in the dense population of skyscrapers.

Instead, high-rise apartments (new and old) compete for real estate above ground zero.

If you buy an apartment in the CBD, residents and guests will literally be a stones throw from all major Sydney attractions and services.

Public transport like trains, buses, light rail and ferries are all close by. 

Some of the best pubs, nightclubs, restaurants and cafes are also located in the CBD, making any stay a comfortable experience.

  • Transport: Central Station,Town Hall, Wynyard and Redfern stations. Circular Quay ferries. 
  • Points of interest: Circular Quay, Sydney Harbour Bridge, Hyde Park, The Domain, Royal Botanic Gardens, Farm Cove,Sydney Harbour, Darling Harbour, and The Sydney Tower.
  • Median Apartment Price:  1 room $755k; 2 rooms $1.25m ; 3 rooms $2.3m.

 

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