Best suburbs to invest in NSW (2025): A research-backed guide for property buyers

Savvy property investors continue to eye New South Wales in 2025, drawn by the state’s vibrant economy and lifestyle. Brent Hill, Director of Sales & Marketing (NSW & VIC) at Frasers Property Australia, shares that buyer sentiment has recently shifted from ‘wait-and-see’ to ‘get-in-now’, thanks to more stable market conditions and ample choice.

Ready to unlock the potential of NSW property? In this guide, we'll take you through some of the best suburbs in NSW to invest in. Let these key insights inform your property journey, so you can effectively evaluate your options and conduct thorough due diligence.

 

What makes a suburb a smart investment?

So, what makes a location a smart bet for investment? If you're on the hunt for the best suburbs to buy investment property in NSW, the answer usually lies in a vibrant local economy and an inviting lifestyle. This often translates to solid capital growth and consistent rental demand (driven by excellent infrastructure, transport hubs, and nearby amenities!). Low vacancy rates are also a telltale sign of a healthy market, often linked to population growth. In fact, the latest NSW population projections expect the region to gain nearly 1 million more people by 2034, highlighting the potential for sustained rental demand.

 

Why New South Wales is attracting property buyers

NSW remains a compelling destination for property investment due to its robust economy and ongoing development. Several factors contribute to its enduring appeal, including:

Economic growth and stability

Historically, NSW has demonstrated strong economic performance, fostering job creation and business investment that supports long-term property market confidence. CoreLogic data reflects this, showing a remarkable 97.6% growth in Sydney property values in over the last decade, highlighting the fundamental economic forces driving property values across the state and contributing to the appeal of many NSW suburbs.

Infrastructure development

Substantial investments in transport networks (e.g., new metro lines), educational institutions, and healthcare facilities across NSW enhance the state’s connectivity and liveability. These critical developments attract more residents and businesses, fueling property demand and potential for capital growth.

Government incentives

There are various government initiatives designed to facilitate property ownership, stimulate market activity, and support aspiring homeowners in achieving their property ownership goals. For instance, the First Home Owner Grant provides a $10,000 boost for eligible purchasers of new homes, while the First Home Buyer Assistance Scheme offers significant stamp duty exemptions or concessions, providing financial relief and better accessibility for new buyers.

Frasers Property developments

Discover some of our Frasers Property developments that strategically tap into key growth areas across NSW, including:

 

 

From thriving tech and education sectors to bustling urban neighbourhoods and coastal homes, buyers can explore a diverse range of exciting options across NSW.

 

Key research factors before choosing a suburb to invest in

Before diving into specific locations, it's crucial to establish a framework for your research to identify the best suburb in New South Wales for your investment goals. Use this checklist below, highlighting fundamental research aspects, so you can make smarter property investment decisions.

1. Market trends and capital growth

Delve into your chosen suburb's past and present market performance. Look into recent sales data, auction rates, and median property prices to gauge market momentum. Understand the growth drivers that may influence future appreciation, such as limited housing supply or increasing demand.

2. Rental yield and demand

Get a clearer picture of immediate returns by calculating the gross rental yield. Analyse the rental market health, including vacancy rates and average rental prices for different properties. High rental demand and low vacancies can indicate a strong market for landlords. and average rental prices for different properties. High rental demand and low vacancies can indicate a strong market for landlords.

3. Infrastructure and development projects

It’s important to ask: Are there any upcoming projects like new residential areas or infrastructure upgrades that could enhance the suburb's appeal, property values, and future growth? Consider the impact of transportation links, healthcare facilities, and community amenities.

4. Close to good educational facilities

Proximity to quality educational institutions, such as universities or TAFE campuses, can be a significant draw for families and students. Suburbs near top schools often see stronger demand and higher rental returns, especially from families.

5. Local economy and employment hubs

Monitor unemployment rates, job growth trends, and existing employers in the area. Suburbs with diverse employment opportunities tend to attract a larger pool of potential tenants and buyers, helping to stabilise and boost the property market.

6. Demographic trends and lifestyle appeal

Familiarise yourself with the demographic profile of a suburb to better anticipate future housing needs, from population growth rates to age distribution. Consider the lifestyle amenities too, such as shopping centres or cultural venues, that make a suburb attractive to residents.

 

Suburbs in New South Wales to consider in 2025

The best suburbs to invest in NSW showcase an effective blend of lifestyle appeal, infrastructure development, and economic growth, making them prime targets for investors this year.

Disclaimer: This information is for research purposes only and does not constitute financial advice*. However, based on current market trends, here are a few NSW suburbs worth exploring.

Shell Cove

Shell Cove, a coastal suburb situated along the scenic NSW South Coast, is a compelling location for property investors.

• Strong lifestyle appeal: This suburb is ideal for buyers seeking a relaxed lifestyle, with its proximity to pristine beaches, convenient local amenities, and a harbour precinct.
• Growth potential: The unique coastal living experience suggests long-term appreciation potential, attracting both owner-occupiers and renters.
• Active rental interest: Shell Cove's rental market remains robust, as seen at The Waterfront, a development by Frasers Property Australia and Shellharbour City Council, attracting both upgraders and downsizers.

Edmondson Park

A rapidly growing area in Sydney’s southwest — Edmondson Park has become a sought-after spot for families and first-home buyers.

• Steady rental demand: This South Western Sydney suburb is showing steady growth, fueled by continuous new housing and improved transit connections.
• New urban hub: Neighbourhoods like Ed. Square provide residents with a range of dining, retail, and entertainment options, creating a self-sufficient and connected community.
• Proximity to transport links: Easy access to public transportation, namely the Edmondson Park Train Station, further enhances this area’s appeal.

Macquarie Park

In North Western Sydney, Macquarie Park is attracting a diverse range of residents and investors with its blend of lifestyle amenities and growth potential.

Education and employment hub: Macquarie Park benefits from its proximity to major universities and employment centres, creating a consistent demand for housing and potentially lower vacancy rates.

Diverse housing options: New communities like Midtown offer a variety of property types, from compact apartments to charming terrace homes. This appeals to various tenants, including students, families, and professionals.

Enhanced accessibility: Local retailers add convenience while nearby public transportation, like the new Sydney Metro, significantly improves connectivity to other parts of Sydney.

 

Final thoughts: How to use this guide in your property journey

Remember: Successful property investing is a personal journey that demands thoughtful planning, your own in-depth research, and a clear alignment of your financial goals with the specific dynamics of each suburb. Use this guide to begin exploring the best suburbs in New South Wales, focusing on areas that resonate with your long-term investment strategy as you map out your path to property ownership.

Ready to go beyond this guide? Check our Property investor guide for more details. Contact us today to find out more — we’ll dive deep into our prime residential communities in NSW and help you find your ideal property.

 

*Disclaimer: This material and its contents (including references to First Home Owner Grant and First Home Buyer Assistance Scheme) and any external links are provided for information purposes as a guide only and do not constitute an offer or contract or any part thereof. Its contents are subject to change at any time without notice.
Frasers Property does not make any express or implied representation or warranty that the information is accurate, complete or correct. Purchasers must make and rely on their own inquiries. June 2025.