Sydney is Australia’s largest city with a population of around 4.5 million people. Centred on the fabulous Sydney Harbour, Sydney was the landing point of the first fleet in 1788 and the birthplace of modern Australia.
Sydney is divided into smaller council areas:
Ashfield, Auburn, Bankstown, Blacktown, Botany Bay, Burwood, Camden, Campbelltown, Canada Bay, Canterbury, Fairfield, Hills Shire, Holroyd, Hornsby Shire, Hunter’s Hill, Hurstville, Kogarah, Ku-ring-gai, Lane Cove, Leichardt, Liverpool, Manly, Marrickville, Mosman, North Sydney, Parramatta, Penrith, Pittwater, Randwick, Rockdale, Ryde, Strathfield, Sutherland, Sydney (City), Warringah, Waverly, Willoughby, Woollahra.
Sydney currently has the highest house and unit prices in Australia. In the past year, parts of Sydney have increased significantly (such as the inner west) whilst the higher end of the market (northern and eastern suburbs) have decreased.
If you want to buy a stand-alone house within 15km of the CBD, you will be looking at a minimum of $600,000 for a 2 bedroom house and would be lucky to get a block size of 200 square meters at that price. Apartments will be easier to buy in this area, starting in the mid $300,000 range for a 1 bedroom and low $400’s for a 2 bedroom.
The median price in Sydney is currently around $640,000 for houses and $450,000 for apartments.
The demand for rentals in Sydney is high with low vacancy rates in a lot of areas. The fact that property prices seem inflated for most people means a lot of people have no choice but to keep renting.
However, in the inner suburbs yields are quite low especially for houses. A 4% yield on a house would be about average, but you can get better yields by moving further out to the western suburbs or by investing in apartments such as a 1 bedroom or studio closer to the CBD.
Overall, Sydney is a popular area and the fundamentals remain the same when looking for a property. Choose an area which has easy access to public transport, an increasing population and increasing development such as new schools, shops and facilities.