It’s time to follow the money – Smart investors urged to “head west” for top investment returns

New builds throughout the western suburbs of Sydney have long been an affordable option for first home buyers as infrastructure and amenity improve and property prices in inner suburbs of Sydney prove increasingly unaffordable for young families.

But leading property developer ALAND is touting the somewhat untapped attractiveness of Greater Western Sydney for the investor market, with rental yields topping 4.7 per cent at its Schofield Gardens development in Schofields.

Those rental yields far outstrip investor returns in noted popular regional hotspots such as Wollongong, where the median asking sale price for May was $750,000 and the median asking weekly rent price was just $530, according to My Housing Market data. Those prices implied a median rental yield of 3.7 per cent per year.

Meanwhile in Newcastle, the median home asking price was $650,000 in May, while the median weekly rental asking price was $460 a week, implying a 3.7 per cent yield. On the Central Coast, the median asking price for May was $546,500 while the median rental price was $470 per week, implying a yield of 4.5 per cent a year.

“What Sydney property investors don’t realise is that they can make much more money in their own backyard than they can in regional areas, while taking advantage of what will probably be much higher capital gains,” ALAND sales director Mark Bernberg said.

“Sydney’s western suburbs are ripe with investment opportunities and no shortage of rental demand. Investing in a freshly-built apartment saves many headaches as well, with next to no maintenance required for the first few years of its life.”

ALAND has experienced a surge in sales in its western Sydney Schofields and Liverpool developments, as the broader Sydney property market booms.

Both areas are expected to grow rapidly over the coming decade, boosted by new infrastructure projects. In 2019, the NSW Government said that population growth for the Liverpool area was expected to increase 26 per cent over the next decade. The Schofields Precinct was rezoned by the NSW government in 2012 and new planning controls were put in place to allow for urban development, which the government said at the time would include nearly 3,000 new homes.