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10 best suburbs to invest in Sydney 2019

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.

Although areas surrounding the central business district have sustained relatively high occupancy rates throughout the year, there is a shift in popularity towards the coastal areas during the summer months. Other than seasonal factors, property type, and size also attributes significantly to the difference and fluctuations in occupancy rates.

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) 

Screen Shot 2019-10-11 at 4.45.52 pm

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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_Hillsdarlinghurst-1

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.


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

 

 

 

 

 

 

 

 

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

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


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.

Download Report

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