Property experts have revealed the 10 Sydney suburbs with the best investment opportunities as rental vacancies are set to tighten as international borders reopen.

Pete Wargent, co-founder of BuyersBuyers, a nationwide network of buyer’s agent services, said apartments in the regions offer strong investments in terms of long-term capital growth and boosting rental returns.

BuyersBuyers’ analysis revealed “strong opportunities” for investors with a budget ranging from $800,000 to $1.2 million and requiring a rental yield of at least 3%.

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“In the unit market, there are strong opportunities in many east coast coastal markets, as well as Sydney’s northern beaches and eastern suburbs,” he said.

“Generally speaking, we seek boutique unit developments with reasonable strata take-offs, and budget permitting, seek family units with owner occupier appeal, in those popular suburbs where the supply is somewhat capped.”

Top 10 suburbs for apartment investors

  • Dee Why, Northern Beaches – 9,002 properties, average unit price of $1,101,702, price growth of 35% Y/Y
  • Manly Vale, Northern Beaches – 1,713 properties, average unit price of $1,112,797, price growth of 35% Y/Y
  • Brookvale, Northern Beaches – 1,436 properties, average unit price of $1,118,894, price growth of 30% Y/Y
  • Maroubra, Eastern Suburbs – 6,504 properties, average unit price of $1,085,009, price growth of 23% Y/Y
  • Kensington, Eastern Suburbs – 4,018 properties, average unit price of $1,062,083, price growth of 25% Y/Y
  • Kingsford, Eastern Suburbs – 3,037 properties, average unit price of $997,565, price growth of 29% YoY
  • Dulwich Hill, Inner West – 3,818 properties, average unit price of $856,349, price growth of 15% Y/Y
  • Leichhardt, Inner West – 2,373 properties, average unit price of $1,068,599, price growth of 19% Y/Y
  • Lane Cove, North Sydney and Hornsby – 3,890 properties, average unit price of $952,659, price growth of 21% YoY
  • Lane Cove North, North Sydney and Hornsby – 4,180 properties, average unit price of $866,669, price growth of 20% Y/Y

With international borders reopening on Monday and a backlog of arrivals waiting to enter Australia after two years of lockdowns, Mr Wargent said he expected rental demand in Sydney and Melbourne, in particular, be strong.

“We can expect to see national rental price growth of 10-20% immediately, with most rental markets across the country already experiencing difficult conditions,” he said.

Property experts have revealed ten Sydney suburbs with the best apartment investment opportunities, including Maroubra. File picture. Credit: Getty Images

Mr Wargent said research by the Reserve Bank of Australia had shown that new migrants and arrivals to Australia “tend to have only a limited impact on housing turnover, as most new arrivals are initially tenants, in particular international students”.

“That means there will be a lot more rental demand in 2022,” he said.

“As the border reopens, many parts of Australia could experience chronically tight rental markets.”