The Sydney property market is always a hotspot, but today we’re focusing on buying an apartment in Sydney’s coveted Inner West. Apartments in Balmain, Balmain East, Birchgrove, Rozelle and (to a lesser extent) Lilyfield are always a good bet for owners/occupiers and investors alike and you’ll find out the reasons why (including good rental yield and low vacancy rates) below.
Who has their eye on Sydney’s Inner West?
There are two main types of people with their eye on the prize of sought-after apartments in Sydney’s Inner West.
- Owners/occupiers
These include older couples downsizing and choosing to settle in the Inner West. And we know from experience that many house owners locally have chosen to sell their houses but remain in our beautiful area. The benefits of downsizing speak for themselves and include an increased cash flow, a decrease in clutter and an improved lifestyle. Plus, with the Federal Government introducing downsizing incentives, there’s never been a better time. People moving into the Inner West might also be “rightsizing” ‒ finding a home that better suits their needs, whether that’s a bigger or smaller property.
- Investors
Both overseas and local investors are interested in the growth in the Inner West, especially right now when the numbers stack up.
Reasons to invest in an Inner West apartment
Here are just a few reasons why people are flocking to invest in apartments on the Balmain Peninsula and Lilyfield.
- Low rental vacancy rates
Australia is currently experiencing a rental crisis and it’s no exception in Inner West Sydney. The area’s current rental vacancy rates are the lowest they’ve been since 2013. We’re talking 0.7% in Lilyfield and 1.7% in Balmain and Birchgrove, according to SQM Research data from April 2023.
The tenants you’re looking at are educated married couples of the DINK (double income, no kids) variety, single professionals, international students and migrants thanks to the Federal Government’s increased migrant intake. With retail and nightlife bouncing back in Sydney’s CBD, you’ll find many people are looking to rent somewhere close to work and all the action.
We’re also seeing locals downsizing from houses to apartments as their children leave home.
- Good rental yield
The gross current rental yield for apartments in the Inner West is 4.5%, as per SQM Research data. The rental yield hasn’t been this promising in the area since June 2013. In comparison, the gross rental yield for Inner West homes was 2.7% in June 2023 ‒ another reason apartments are a great strategy.
A further benefit of buying an Inner West apartment rather than a house is the median selling price is around $1,270,000 ‒ about half the median price of a house ($2,525,000) in the same area.
Now let’s focus on the weekly rent you can expect. The current median weekly rent for an Inner West apartment is $683.93. This is a whopping 35.4% increase in 12 months.
We’re here to take the stress out of buying and managing your investment property so ask us for advice before you buy. We know which apartments are most in demand by renters and can guide you as to the best buys. If you’re considering selling your house, call us first for advice on how to prepare your home for sale, including adding the all-important kerb appeal.
Don’t just take our word for it…
If you need more convincing, according to Hotspotting’s latest report, Sydney’s Inner West ranks third when it comes to the Top 10 National Best Buys. The Property Tribune says this is because the area is set to benefit from major train station upgrades and multi-billion-dollar projects like the Rozelle Interchange. This under-construction underground motorway will be one of the world’s most complex underground junctions when it’s completed, hopefully by the end of 2023.
The Property Tribune also called the Inner West one of Sydney’s most resilient sectors, with relatively affordable apartments in the grand scheme of the local property market and we couldn’t agree more. Now is most certainly the time to jump on the property ladder in Sydney’s Inner West and snap up an apartment, so visit our website to see our current listings.
Can we help with your Inner West home?
Whether you’re ready to sell or need help to buy, rent or manage your investment property, we have the experience and local knowledge to make your property journey easier.
Looking for help selling your home or renting your investment property? Our team at Belle Property Balmain support homeowners across Balmain, Balmain East, Birchgrove, Rozelle and Lilyfield. Feel free to get in touch for a no-obligation discussion or property appraisal.
