10 Best Suburbs to Invest in Sydney NSW: Where Smart Investors Are Buying in 2026

Sydney’s property market has held strong throughout 2025, underpinned by stabilising interest rates, continued population growth, and improving consumer confidence. While affordability remains a challenge in some areas, many suburbs are showing signs of long-term value thanks to upgraded infrastructure, solid rental demand, and renewed buyer activity.

For investors, the best suburbs to invest in Sydney are typically those offering future capital growth, accessible price points, reliable tenant demand, and convenient access to transport, schools, and lifestyle amenities. Areas undergoing transformation or attracting new developments tend to outperform over time.

Now, let’s explore the top Sydney suburbs showing strong investment potential heading into 2026.

If you’re planning to buy a property in the Northern Beaches, Sydney, we can help! Our local brokers can assist property investors by offering tailored loan advice and helping them identify suitable investment loan options. Call us at 0403 316 686 or visit www.mortgagebrokersnorthernbeaches.com.au to get started! 

Key Takeaways

• Sydney offers several investment hotspots for 2026 driven by infrastructure, affordability, and lifestyle.
  
  
• Suburbs like Bankstown, Leppington, and Coogee are experiencing high investor interest.
  
  
• Growth factors include population increases, transport upgrades, and rental demand.
  
  
• Capital growth and rental returns vary by location and property type—know your numbers before diving in.
  
  

Top 10 Sydney Suburbs for Property Investment

1. Bankstown

Bankstown is evolving into one of Western Sydney’s leading investment hubs thanks to its urban renewal plans and strong community services. The suburb enjoys excellent public transport connectivity and is set to benefit from the Metro line extension. Its mix of affordability, infrastructure growth, and consistent rental demand makes it an ideal choice for property investors seeking long-term returns.

Median house price: $1,615,000
Median unit price: $580,000
Capital growth: Houses +10.94%; Units +2.19% (Year-on-Year)
Infrastructure Development: Sydney Metro Southwest line, commercial precinct revitalisation
Growth Drivers: Transport, employment hubs, cultural diversity
Population Growth: Moderate, with steady annual increase
Investment Potential: High for both houses and units due to future infrastructure

2. Leppington

Located in Sydney’s southwest growth corridor, Leppington is a rising star for property investors. It benefits from its proximity to the Western Sydney Airport and the ongoing development of the Aerotropolis. With large-scale infrastructure projects and increasing buyer interest, Leppington offers strong potential for capital growth and long-term investment success.

Median house price: $1,020,000 to $1,205,000
Median unit price: $710,000
Capital growth: Houses 3.9%; Units N/A (varies from sources)
Infrastructure Development: Leppington Town Centre plans, airport rail link
Growth Drivers: Airport proximity, job creation, land supply
Population Growth: Rapid due to housing estates
Investment Potential: Strong, especially for house and land packages

3. Parramatta

Often called Sydney’s “Second CBD,” Parramatta is a business and lifestyle powerhouse. It features major commercial offices, Westfield Parramatta, and an ever-expanding public transport system. Its central location, strong job market, and ongoing infrastructure investment make it a prime destination for property investors seeking both rental yield and capital growth.

Median house price: $1,700,000
Median unit price: $665,000
Capital growth: Houses 3.53%; Units 3.9%
Infrastructure Development: Parramatta Light Rail, Sydney Metro West
Growth Drivers: Corporate presence, education institutions, retail hub
Population Growth: High, especially among professionals
Investment Potential: Excellent for units and commercial-style housing

4. Liverpool

Liverpool continues to shine as an affordable investment suburb with plenty of infrastructure and urban development. The city centre is undergoing a vibrant renewal, making it a future hotspot for property growth. Its combination of affordability, strong rental demand, and proximity to major transport links makes it an attractive option for investors targeting long-term gains.

Median house price: $1,180,000
Median unit price: $540,000
Capital growth: Houses 15.7%; Units 2.0%
Infrastructure Development: Health and education precinct expansion
Growth Drivers: Hospital upgrade, universities, retail investment
Population Growth: Strong and multicultural
Investment Potential: Solid, especially for entry-level investors

5. Ashbury

Ashbury’s charm lies in its heritage homes and leafy streets, making it a favourite for families and long-term residents. It’s close to the Inner West action but with a quieter, community-driven vibe. Its limited housing supply, strong owner-occupier appeal, and consistent capital growth make it a solid choice for investors seeking stability and long-term value.

Median house price: $2,210,000–$2,230,000
Median unit price: $1,237,500
Capital growth: Houses 1.67%; Units 10.99%
Infrastructure Development: Local park upgrades, improved road links
Growth Drivers: Low supply, family appeal, community vibe
Population Growth: Slow and stable
Investment Potential: High for premium investors seeking capital growth

6. Dee Why

Located in Sydney’s Northern Beaches, Dee Why offers investors a mix of beachside living and urban convenience. Popular with renters, it boasts strong yields and rising property values. Its vibrant local economy, coastal lifestyle, and consistent demand from tenants make it a standout choice for investors seeking reliable returns and long-term capital growth.

Median house price: $2,910,000
Median unit price: $1,150,000
Capital growth: Houses 16.3%, Units 8.1%
Infrastructure Development: Beach promenade, transport upgrades
Growth Drivers: Northern Beaches lifestyle, schools, surf culture
Population Growth: High with younger demographics
Investment Potential: Excellent for units and duplexes

Eyeing Dee Why for your next property investment? Our Dee Why mortgage brokers can help! We can assist in selecting the right lenders and loan options that suit your investment goals. Call us at 0403 316 686 or visit www.mortgagebrokersnorthernbeaches.com.au to get started with a free consultation. 

7. Haberfield

A tightly held suburb known for its federation homes and Italian heritage, Haberfield is ideal for investors looking for long-term capital gain and consistent tenant demand. Its prestige appeal, heritage character, and scarcity of available properties contribute to strong capital stability and low vacancy rates for discerning investors.

Median house price:$2,725,000 - $3,000,000
Median unit price: $1,370,000
Capital growth: Houses 10.07%; Units 3.37%
Infrastructure Development: Traffic and urban upgrades
Growth Drivers: Prestige market, heritage appeal
Population Growth: Low but stable
Investment Potential: Niche but rewarding for high-end investors

8. Sans Souci

Beachside charm and a relaxed lifestyle make Sans Souci an attractive investment for those seeking rental demand and holiday home appeal. It’s close to St George Hospital and quality schools. Its coastal location, strong tenant interest, and limited property turnover offer solid long-term returns for investors focused on lifestyle-driven growth.

Median house price: $2,700,000
Median unit price: $1,120,000
Capital growth: Houses 8.60%, Units 2.17%
Infrastructure Development: Foreshore upgrades, cycle paths
Growth Drivers: Coastal living, hospital access
Population Growth: Moderate
Investment Potential: Strong, especially for lifestyle investors

9. Ashfield

Ashfield offers a mix of cultural vibrancy and convenience with solid transport links and proximity to the city. It has a strong rental market and growing demand among young professionals. Its diverse housing options, reliable tenant demand, and inner-city location make it a compelling option for investors looking for steady rental income and future growth.

Median house price: $2,260,000
Median unit price: $858,750
Capital growth: Houses 5.6–7.6%, Units 5.2–8.4%
Infrastructure Development: Train station precinct updates, community services
Growth Drivers: CBD access, multicultural population
Population Growth: Moderate
Investment Potential: Strong for units and townhouses

10. Coogee

Coogee blends seaside living with proximity to Sydney’s CBD, making it a premium location for investors. The suburb appeals to both renters and long-term owners, offering steady returns. With strong demand, low vacancy rates, and high lifestyle appeal, Coogee presents a lucrative opportunity for investors targeting stable income and long-term capital appreciation.

Median house price: $4,287,500
Median unit price: $1,525,000
Capital growth: Houses 7.99%; Units 2.52%
Infrastructure Development: Coastal upgrades, Randwick campus enhancements
Growth Drivers: Beach access, university proximity
Population Growth: Steady and affluent
Investment Potential: High-end with low vacancy rates

Sources: Realestate.com.au, Domain House Price, NSW Government, Infrastructure NSW. Property prices in this article are current estimates and may change over time. For the latest figures, consult a licensed real estate agent or property professional.

Looking for tailored financing to invest in the Northern Beaches, Sydney? Our experienced mortgage brokers help investors streamline every step of the property investment loan journey, with tailored loan options and personalised loan application support. Contact 0403 316 686 or visit www.mortgagebrokersnorthernbeaches.com.au to get started.

FAQs

What are the best suburbs to invest in Sydney in 2026?

Top suburbs include Bankstown, Leppington, Parramatta, and Coogee due to their infrastructure growth and rental demand.

What are the best suburbs to invest in the Northern Beaches?

Some of the top investment suburbs in the Northern Beaches include Freshwater, Manly, and Fairlight. Read more in our guide to the Best Suburbs for Property Investors in the Northern Beaches.

Is Leppington a good place to invest in property?

Yes, Leppington is gaining attention for its affordability and proximity to the Western Sydney Airport project.

How do I choose the right suburb for property investment in Sydney?

Look for areas with strong population growth, infrastructure upgrades, and rising rental yields.

Are units or houses better for investment in Sydney?

It depends on your goals. Units are popular in inner-city suburbs; houses perform well in growth corridors.

What’s the average rental yield in Sydney suburbs?

Yields vary by suburb and property type, ranging from 3.5% to over 5% for high-demand areas.

What is the minimum deposit to buy an investment property in Sydney, NSW?

Most lenders require a minimum deposit of 20% of the property value, but some may accept 10% with Lenders Mortgage Insurance (LMI). A larger deposit can improve your loan options.

What are the types of investment loans available in Sydney?

Common investment loan types include principal and interest loans, interest-only loans, fixed-rate loans, variable-rate loans, and line of credit loans. Each suits different investment strategies and financial goals.

What loan is best for investment property?

The best loan depends on your strategy. Interest-only loans are popular for maximising cash flow, while principal and interest loans build equity faster. A mortgage broker can help match the right loan to your goals.

Can a mortgage broker help me invest in property?

Absolutely. Brokers provide tailored finance advice and connect you to suitable loan options.

Wrapping It Up

The best suburbs to invest in Sydney offer a wide range of opportunities, from high-growth Western Sydney areas to established beachside and inner-city neighbourhoods. Whether you’re chasing capital growth, steady rental yields, or long-term development, Sydney’s diverse property market has something for every smart investor, especially going into 2026.

If you’re making the Northern Beaches your next property investment, our brokers at Mortgage Brokers Northern Beaches can assist you with the right financing strategy! We take the time to understand your investment goals, assess your borrowing capacity, and compare loan products across multiple lenders to find a solution that fits.

We can guide you through the full process—from pre-approval to settlement—ensuring a smooth, stress-free experience. Whether you're aiming for long-term capital growth or strong rental yields, we’ll help structure your investment loan to support the outcome you’re after.

Call 0403 316 686 or visit www.mortgagebrokersnorthernbeaches.com.au to get expert advice tailored to your next move.