2022 Sydney Property Investment Guide

Following on from a year that CoreLogic states saw Sydney property prices rise by 25.5% – it’s not surprising that many savvy investors are wondering what to expect from the coming year. Despite a worldwide pandemic, Sydney has continued on its high performance trajectory which begs the inevitable question – ‘can this continue?’

So what trends should you be looking for in 2022 and what tips can we offer when it comes to property investment in Sydney?

Why Sydney, why now?

Boasting beautiful coasts, vibrant city living and easily accessible outer suburbs – Sydney is a popular choice for property investors and owner-occupiers alike. With a market that has performed incredibly well over the long term, it’s easy to see why Australia’s most populous city should be on your property investment radar.

Whilst being widely known as the most expensive city in Australia when it comes to purchasing property – Sydney has also yielded the highest capital growth over the past decade, proving to be a lucrative long term investment. Sydney has also seen a decline in economic performance due to the pandemic, however,  multiple infrastructure developments are being planned to combat this. This will drive employment growth as well as an increase in housing prices in certain areas.

Australia-wide factors to consider include an expected interest rate rise, anticipated to hit late this year. Construction materials and building production are already being impacted by the increase in costs which will have a flow-on effect on the national property markets, with some reports anticipating a housing shortfall as a result within 10 years…

As an economic capital, and most populous city, the Sydney market is expected to continue to grow over the long term and is therefore important to consider your next investment property in Sydney. The key is to choose the right location and property at an affordable price point, which is where Ironfish can help.   

Where to buy an investment property in Sydney

The skilled analysts at Ironfish are continually researching property investment opportunities to support our customers in building their property portfolio. With interest rates set to increase over the coming years, it’s crucial that investors are being selective when it comes to the areas they choose to invest in. Because of this, in Sydney we’re considering a few main factors:

• Affordability

As mentioned, interest rates are expected to rise over the coming years which will drive buyers to the affordable end of the market.

• Infrastructure

There are multiple infrastructure projects on the pipeline in Sydney which should be factored in when deciding where to purchase an investment property. In order to alleviate traffic congestion and improve job connectivity, there are both key road networks and new metro train lines planned. There is also new health and education infrastructure to be developed and the Western Sydney Airport.

• Employment opportunities

Sydney has seen a diversification in employment centres over the past decade, with the CBD no longer the only focus. Further to this, there are now multiple employment hubs across the city that the housing market can benefit from. The key areas we’re looking at are:

• Liverpool
• Penrith
• Parramatta
• Macquarie Park

There is much to evaluate when considering investing in the Sydney housing market – the skilled Ironfish team are here to help you reach all of your property goals in 2022.

View our Australian Property Investment Guide for 2025

For more information, view our comprehensive analysis of the coming trends. Download our 2022 Guide to the Property Market.