Looking for an exceptional investment in Sydney’s Eastern suburbs? These are our picks - Jan 2025

By Munro Donen, Principal Buyers' Agent & Director, Propertybuyer East

With expected interest rate falls and strong rental yields these suburbs should definitely be on your radar.

Sydney has a lot of interesting suburbs with great property opportunities, but few see such consistent growth as Sydney’s Bayside suburbs. The Bayside encompasses suburbs such as Rushcutters Bay, Elizabeth Bay, Rose Bay, Potts Point, Double Bay and Darling Point.

This collection of suburbs is the epitome of Sydney lifestyle. They are close to the CBD, so residents have an easy commute to town and work hubs. They’re also on or close to the water so weekends can be spent enjoying good times on and around Sydney Harbour.

Then there’s the hip factor of these locations. With some of the city’s best restaurants and bars, many people are drawn to live here.

We see plenty of activity among different buyer groups wanting to live/invest in these suburbs. There are ambitious professional couples who are keen to establish themselves in this Bayside community. There’s also a sizeable representation of the LGBTQ+ community buying throughout these suburbs. Downsizers are another active buying group looking for lock-up-and-go homes within a great café latte lifestyle. These buyers want to be close to the CBD, and a ferry, bus ride or easy walk into the heart of the CBD is preferred.

Each suburb among the Bayside has its own charms, and property price growth and rental performance is a drawcard. The median price for a two-bedroom apartment ranges from $1.3 million to $2.1 million across the Bayside, with most suburbs seeing between 8% to 10% capital growth over the past five years. Properties that have water views and harbour breezes have some of the strongest capital growth. Investors can expect a rental yield of 3.5% to 5% depending on the type of property and its attributes.

Rushcutters Bay Park and Marina is an extremely popular spot for boaties living nearby – particularly as it’s the home of the Cruising Yacht Club of Australia. The Marina is the ideal mooring making for an easy jump on/off point for boating throughout the region. The suburb itself is diverse with parklands, edgy warehouse apartments, trendy retail, art galleries, cafes, eateries and shopping all sharing space here.

You will find many of the same desirable elements in Elizabeth Bay, Rose Bay and across other Bayside suburbs. There’s also prominent health and wellness facilities throughout, helping broaden the appeal. 

Potts Point, Macleay Street offers some outstanding restaurants and other eateries, and it’s often called the “Paris End” of the suburb.

Housing styles that are particularly popular in the Bayside include Art Deco, and Modern apartments as well as terrace homes and premium houses. Of course, property prices are steep if you are looking for a detached or semi-detached house on its own land, with most properties trading for more than $5 million (many are well above $10 million).

But it is still possible for those with tighter budgets to live here by buying an apartment – and there are plenty of types to suit. These will range from studio apartments priced around $500,000, right through to luxury penthouses with water views that will cost $10-million-plus. Perhaps the most common transactions we see are two-bedroom apartments for $2 million to $3 million, as well as true one-bedders with parking that will cost in the early $1 millions.

There’s limited stock available throughout the Bayside suburbs as there’s not a lot of new projects given how densely developed the area is already. Some new boutique apartment projects have been popping up, but they are rare.

There are several older but very desirable apartment buildings in the area. The Elan building on the fringe of Elizabeth Bay was built in the late 1990s and is a great example of an older, iconic tower that appeals particularly to empty nesters with many apartments offering great views. Another renowned building is Altair Apartments in Rushcutters Bay built in 2000. The wide variety of apartment types throughout this block make it appealing to a broad range of buyer types with varying budgets.

One thing to note for buyers is that there are several company-title buildings throughout the Bayside suburbs. Company title is an older titling arrangement that was created prior to strata title. Under company title, you don’t own your particular apartment like you would with strata title. Instead, you buy shares in the “company” that owns the building, and you are given the right to occupy your apartment.

While company title can achieve the same outcomes as strata, they can come with more restrictions as set by the building’s committee. Also, they can be challenging as security for a bank loan as sometimes lenders will require purchasers to have higher deposits. This is why having an experienced specialist buyers’ agent working for you is crucial in the Bayside. We know how to navigate the various challenges and other nuances of different property types, particularly company title apartments.

Another challenge I’ve seen in this area is for investors intending to put their apartment up on short-stay websites like Air BnB. There are strict guidelines on short stay under the City of Sydney regulations, so these must be navigated carefully if that is your aim.

Bayside addresses have great appeal but buying in these areas without the help of a well-connected and experienced buyers’ agent could result in you overpaying. If you are keen on the Bayside lifestyle, or looking to invest, contact our office and let us help you source, negotiate and secure your ideal property and save you money.

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