Sydney is one of the three capital cities in the world set to see a significant rise in capital growth for 2020. Since, Sydney is the largest capital city of Australia, the trend to invest in a property in Sydney has been sort of a golden opportunity given its beautiful beaches, parklands, economic opportunities attracting people from around the globe.
In this article, we would like to break down how South-West and North-West suburbs of Sydney create a positive impact on your investment return and explain terms like capital growth and rental yield.
In simple terms, Capital Growth is the increase in value of your investment property or property portfolio over time, likewise, rental yield is calculated on an investment property as you are seeking to secure income from it i.e. the measurement on future of future income on your investment. Looking at past and present data records, the increase in property prices from 1993 AD to 2010 AD has been more than 233% and has seen significant increase since then. These data will attract any investor’s eyes.
Some of the most popular suburbs in the South-West and North-West region of Sydney are Bardia, Schofields, Edmondson Park, Oran Park, Kellyville, Riverstone, Rouse Hill and more. Given the roaring demand of property in Sydney, investors has shifted to the further end of Sydney CBD. Along with property ownership, the rate of rental occupancy has increased to a higher level given the constant increase of population due to migration and international students intake every year. In the timeframe of 1993 to 2010, property prices in North-West suburbs of Sydney has seen an increase of 261% with an annual compounding rate of 7.9%, the South-West suburbs has an seen increase of 231% with an annual compounding rate of 7.3%, further the average annual growth return of properties in Sydney is 4.13% with the annual gross rental yield of 5.2%.
Along with that, Leppington and Box Hill are one of the emerging suburbs of Sydney. There has been several development plans for both suburbs in the coming years, in Leppington a new community centre, access to a Major Centre in the nearby Leppington North Precinct where jobs, shopping, entertainment, community and government services will be provided, upgrades to rail and major roads, including Camden Valley Way and playing fields and recreational land along Scalabrini Creek has been planned.
Likewise, Box Hill is sure to see some major development projects such as a new town centre and three village centres, 133 hectares of employment land, upgrades to major roads, new primary and high schools, protection of significant vegetation and improved connections to encourage walking and cycling. These changes is enough to gain attention from the public looking for a suitable suburb to reside in, which makes these suburbs the upcoming spotlight in the property market.
Some of the popular suburbs of Sydney has seen the following annual growth in their property investment.
| Suburb Name | Annual Growth | Gross Rental Yield | |
| 1. | Edmondson Park | 5.79% | 3.82% |
| 2. | Gregory Hills | 4.13% | 4.23% |
| 3. | Catherine Field | 5.35% | 3.58% |
| 4. | Schofields | 7.04% | 3.86% |
| 5. | Kellyville | 7.38% | 6.78% |
| 6. | Rouse Hill | 5.73% | 3.38% |
| 7. | Marsden Park | 20.29% | 4.19% |
These are only a small portion of data on the benefits of property investment on various suburbs of Sydney, with the right amount of guide property investment can be the best decision for your future.
We can help you make the right choice and help you secure a better future for you and your loved ones. Contact us for any real estate queries, with our in-house Real Estate Agency and Construction company, we are the best choice for you.