What are Sydney’s best suburbs to invest in for Airbnb properties?
Find out which locations in Sydney have the highest short-term rental occupancy rates in line with the impact of seasonality.
Sydney holds immense Airbnb property investment opportunities and currently ranks in the World’s top cities in number of Airbnb listings.
Several aspects make Sydney a true tourist capital of Australia.
For example, there are breathtaking surfing beaches on the Eastern coast, iconic attractions such as the Harbour Bridge or the Opera House, and special events like Vivid.
However, seasonality has a big impact on short rental and Airbnb occupancy rates so it’s important to choose the right locations for your investment property.
The Sydney property market has experienced a challenging few years since its recent peak in 2017 due to price declines in certain areas of the city. This has been the result of high supply from new developments and stagnant growth in long term rental yields, resulting in more property investors turning to managed short-term rental options.
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.
Top Sydney Suburbs in Summer
These are the best performing suburbs and property types during summer in Sydney based on average occupancy rates in 2018:
Top Sydney Suburbs in Winters
These are the best performing suburbs and property types during winter in Sydney based on average occupancy rates in 2018:
How Does Seasonality Affect Short Term Rentals?
The suburbs with the highest occupancy rates are generally scattered around the city centre and coastal areas for both summer and winter.
Take advantage of these changes by optimising your property investment strategy based on the type of property, its location and its sensitivity to seasonal changes in demand.
If you prefer more stability, city areas located more central, like Redfern and Chippendale, perform more consistently year-round.
Listings in these locations can yield up to $450 per night during peak season.
These Central suburbs serve as strategic locations for business travellers or people who simply want to be close to the buzz of the city centre, no matter the season.
Read more on smart pricing strategy in our Short-term rental guide.
How does summer affect occupancy rates in Sydney’s top suburbs?
The coastal suburbs draw visitors to enjoy Sydney’s wonderful beaches during summer.
Locations like Bondi, Manly, Coogee or Maroubra are the ones that seem to be the most preferred by beach-goers.
These locations are great for renting out on Airbnb and enjoy a high overall return on investment, however they are naturally more sensitive to seasonality, and experience a decrease in occupancy rates as colder weather sets in Sydney.
Property owners in these areas capitalise much more during the warmer seasons with smart pricing strategy.
During the summer months, the most popular houses tend to be concentrated in the Eastern suburbs as opposed to the Inner-city.
Interestingly, less movement in demand is observed among apartments under an influence of seasonality, and they perform well both in Eastern and Inner-city suburbs throughout the year, which could be explained by the trend that houses are preferred during warmer seasons for its outdoor features such as pools and gardens.
How does winter affect occupancy rates in Sydney’s top suburbs?
It is interesting to note that occupancy rates are on average higher during winter than summer, for both houses and apartments.
This is caused by the fact that the supply of Airbnb properties is higher in summer as the majority of homeowners rent out their places while they go on holiday, which causes an oversupply of listings in the summer season.
This is a fact worth knowing to any perceptive real-estate investors looking to take advantage of fluctuations in seasonality.
At MadeComfy, our pricing and revenue management team utilise a variety of tactics such as smart pricing and longer booking windows to ensure our client’s properties profit from the supply and demand changes in winter and throughout the year.
Business travel continues to generate consistent Airbnb bookings in the inner city locations, while simultaneously the City of Sydney stimulates tourism during the winter by holding various festivals and events, making these locations great for enabling easy access to the venues.
Examples of Sydney’s winter attractions include the Vivid Festival, which takes place in Darling Harbour, Barangaroo and Circular Quay; as well as the Rocks Christmas in July Markets.
What other factors play a role in successful short-term rentals
Other factors like professional photography, attractive interior design, fitting listing description, good pricing strategy and efficient management are fundamental for your continuous success.
It can get overwhelming to try to get all of those right by yourself.
MadeComfy provides all that and more, in an end-to-end property management service, achieving 40% greater returns than long-term rentals and self-managed Airbnb listings.
Our partnership with Airbnb also gives you access to unique data, priority support and special features to ensure your property outperforms others.
20 Best Suburbs to Invest in Sydney 2019
Based on the Sydney occupancy rates in summer and winter, there are some clear stand out suburbs that would make great options for an Airbnb investment property.
However, all investors have their own preferences and strategies.
So, in no particular order, here are 20 suburb profiles to help you decide where to buy your next investment property.
(*Note: All Median prices are based on Domain.com.au data)
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.
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 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 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 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 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.
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 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 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.
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.
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 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 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 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.
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 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.
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 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 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.
Both winter and summer in Sydney hold immense opportunities for short term rental management.
Whether you are looking to invest in a property for Airbnb or already own one, it is crucial to implement seasonality into your rental strategy and pricing.
Location and property type are only two of the factors that determine the success of a short-term rental listing though.
While we’ve only highlighted some top suburbs, properties can still perform well as long as public services and major points of interest are within reach via public transport.
Find out how much you can earn in your Airbnb investment property based on factors such as location and property type.
Discover the Airbnb potential of your property investment and start earning more with MadeComfy!