Darling Point is popular with real estate investors and, given the suburb’s great fundamentals, it’s easy to see why.
In fact, I often describe Darling Point as an investor’s paradise. Once people live here they love it. In my experience, these same local residents are then often drawn to invest here when the opportunity presents itself.
Who invests in Darling Point?
Over the years I’ve met and worked with many people who own their own home in our area but also own investment properties in the same or nearby buildings.
Many people from outside of Sydney choose Darling Point when they’re looking for an investment that can double as a city pad. They often have their primary residence in the Southern Highlands or on the beaches but share their Darling Point apartment with friends and family or rent it out when they’re not using it.
Darling Point has also long been a favourite with renters, particularly young city professionals. In fact, many renters love Darling Point so much they decide to become owners here themselves when the time is right.
Great investment fundamentals
Darling Point is a suburb that ticks many boxes for property investors. For example:
Just researching the market?
- Astute investors know that nothing trumps location. Just 4km from the CBD Darling Point’s harbourside location is truly fabulous. It’s super close to all the action but feels a world away.
- Residents are blessed with tranquil, tree-lined streets, harbour views, great walks and gorgeous parks.
- As I’ve already mentioned, our area is in high demand from tenants. Census data shows that around 34% of properties in Darling Point are rented. This keeps vacancies low and rents high.
- realestate.com.au classifies Darling Point as a high demand area. Listings here receive traffic well above the NSW average with online searchers, helping them to maintain their value and grow over time.
- This is a blue-chip area and although prices may be steep at the top end of the market, investors can afford quality entry-level apartments. One-bedroom units represent particularly good value. A one-bedder will cost from $800,000 to around $1.2 million, depending on its attributes and views.
- There is a good cross-section of apartments to choose from. From character art deco to converted houses, modernist 1960s and 70s high rise or luxury contemporary penthouses. Census data reveals that 11% of properties have one bedroom, 43% of properties have two bedrooms, and 33% have three bedrooms.
- Darling Point has great infrastructure and transport connections including a local bus service, and a ferry service. It’s also just a short walk across New South Head Road to Edgecliff Station and the bus terminal.
- Richie’s cafe is the backbone of the community, with larger supermarkets, shops and cafes conveniently right next door at Edgecliff or Double Bay.
Darling Point: The figures
While the median house price currently sits at around $7 million in June 2020, according to realestate.com.au, units are a much more accessible $1,727,500.
The median weekly rent for units is $820 according to realestateinvestar.com.au, with a yield of 2.5%, and a vacancy rate of 3.22%. Rents may have dipped slightly this year, in part due to COVID. But capital gains have been solid over the past decade. In 2011, units sold for a median price of $1.2 million, meaning they’ve risen over half a million dollars since.
Looking to buy or sell property in Sydney’s Darling Point?
Get in touch with me today.