Rental Growth Suburbs Deliver Excellent Potential For Investors
Rental growth is a key priority for property investors because it assists with mortgage repayments and adds to overall income. Investors looking to hit Sydney’s lucrative property market should consider suburbs with high yield potential based on historic data.
Michael Murray, Managing Director of Murray Property reveals, “Suburbs facilitating an easy lifestyle close to a variety of amenities have been in demand. They remain popular with those who want to live near workplaces without conceding on convenience.”
He added, “Tenants typically want low maintenance units to suit busy work schedules, so areas that catered to these needs saw greater rental growth.” Despite the recent slowdown, some suburbs saw respectable rental growth in the last year, and are listed below.
Woolooware
A popular suburb with young families and professionals for multiple reasons, Woolooware sits just 24km south of the CBD. Woolooware enjoys easy train station accessibility and proximity to numerous schools in the area. In fact, a PRDnationwide Property Hotspots Report indicated a 36.5 percent growth in housing units between 2015 and 2016.
North Sydney
Home to a burgeoning number of corporate offices, North Sydney is the perfect location for tenants who want to live footsteps from workplaces. Nearly 61 percent of residents are tenants, which is why rental growth is highly likely here. The suburb has grown annually at 6.91 percent, which is excellent news for those looking to invest.
Berala
Just 20 km west of the CBD, Berala has seen an apartment unit boom in recent times. Rental yields hovered around the 3.1 percent mark, which indicates that this suburb remains an alluring proposition for property investors. Berala is an in-demand suburb for renters in Sydney, and is served by a railway station, parks, recreational facilities and schools.
Tempe
Nestled in Sydney’s Inner West, Tempe is an exciting suburb full of lifestyle potential for singles, couples and families. Near Sydney University and Newtown, Tempe is well served by restaurants, bars, shopping precincts and a railway station. Tempe saw 3.2 percent rental growth in the last few months, which continues to show promise for property investors.
Woolloomooloo
Woolloomooloo continues to attract a range of young single and coupled up professionals because of their ability to walk to work. Offering rental growth of 2.5 percent in the last year, Woolloomooloo continues to show promise in a slowing down market. Dotted with a myriad of restaurants and bars, this CBD precinct is highly sought after by tenants, and can offer good returns for property investors. Renters also enjoy the multiple festivals and events taking place in the CBD after work hours, which is why Woolloomooloo is a popular choice.
The last year witnessed a slowdown in rental growth, but some suburbs stood out among others. Property investors looking to benefit from rental growth should consider investing in these Sydney suburbs.