When you’re looking to invest in a new property, or you have an existing property that it’s time to lease out, you need to know that you’re searching in the right market.
Sydney’s Sutherland Shire is often mentioned as one of its best areas. But is it great for investors too? Let’s take a look.
Benefits of leasing your property in the Sutherland Shire
While we’ll get into some specific rental income figures below, these are some of the broad benefits of leasing an investment property in the Sutherland Shire:
1. It has a thriving property market
The Sutherland Shire is a hot property market, with property prices generally going up – taking rental income up too. There’s a good supply of tenants and strong demand for places to live, giving you lots of opportunities to fill your property and start generating passive income.
Of course, these numbers are all subject to change depending on when you’re looking at the market. We’ll talk more about that below.
2. Desirable place to live
The Sutherland Shire is a place where people want to live. And no wonder – with such close proximity to not only some of Sydney’s best beaches, but backdoor access to Royal National Park and tons of amenities (like schools, shops, eateries and rail links), it’s got everything tenants could want in a suburb.
3. It’s growing
There are always projects underway to improve and grow the Sutherland Shire, helping to ensure it continues to thrive into the future. At time of writing there are numerous active transport links in development (including cycle and pathways), plus new playgrounds, libraries, car parks, sports facilities and recreational tracks.
Rental yields and vacancy rates in the Sutherland Shire
Now let’s look at some of those numbers to see what’s happening right now in the Sutherland Shire for property investors.
- Remember, these figures will change: Yields and vacancy rates move all the time, and the market may look a little different while you’re looking to lease. For up-to-date figures relevant to your specific property, contact our team for a free rental appraisal.
Rental yields in the Sutherland Shire
At time of writing, the median rental yield across the Sutherland Shire is about 2-3%, which has grown just over 9% from last year (Real Estate Investar)
Here is a snapshot of how some specific suburbs are performing across the Shire:
| Suburb | Rental Yield, Homes | Average Weekly Rent (per week) | 12-month Rent Growth |
| Como | 2.9% | $920 | 26% |
| Jannali | 2.9% (4.5% for units*) | $800 ($580 for units) | 14.3% |
| Oyster Bay | 2.8% | $900 | 6.5% |
| Caringbah | 2.7% (4.2% for units) | $850 ($600 for units) | 1.8% |
| Woolooware | 3.0% (4.3% for units) | $1,280 ($700 for units) | 8.9% |
| Cronulla | 2.3% (3.6% for units) | $1,450 ($620 for units) | 16% |
| Burraneer | 2.8% | $1,545 | 1.3% |
| Kurnell | 2.5% (3.1% for units) | $900 ($710 for units) | 1.4% |
*data on units was not available for every suburb
Source: realestate.com.au
Vacancy rates in the Sutherland Shire
At time of writing, the average vacancy rate across the Sutherland Shire was just less than 1%, with about 20% of the entire 200,000-strong population living in rental properties. This suggests good levels of demand for leased properties in the Shire.
Here’s a snapshot of vacancy rates across the region:
| Suburb | Vacancy Rate | Rental Population |
| Como | 0.14% | 9.33% |
| Jannali | 0.91% | 24.30% |
| Oyster Bay | 0.41% | 7.38% |
| Caringbah | 1.14% | 33.52% |
| Woolooware | 1.45% | 17.86% |
| Cronulla | 1.82% | 34.66% |
| Burraneer | 0.80% | 8.69% |
| Kurnell | 0.89% | 13.19% |
Source: Real Estate Investar
What is a ‘rental yield’?
Rental yield is a figure which tells you how much annual income a rental property has generated, expressed as a percentage of its value. The higher the rental yield, generally the higher the income you’d have received from that property.
What is a ‘vacancy rate’?
Vacancy rate is a figure which shows you the percentage of vacant units within a specific area. A high vacancy rate might indicate that there is high demand for tenants, but not enough supply – therefore, properties are sitting empty. Low rates can indicate higher demand for tenants.
Other things to think about when leasing in the Sutherland Shire
Rental yields and vacancy rates are only two of the factors which go into making a suburb a wise or poor investment decision. That’s because they’re just numbers on a page, changing all of the time. Reality on the ground can affect what your leased property might be worth – so make sure to take into account a few other things:
1. Expert advice
Leasing your property is a big decision, which could have a major impact on your finances. Before making any decisions, it always pays to consult a professional. We recommend talking to a financial advisor for any finance-related concerns, and a real estate expert with local knowledge of the Sutherland Shire for advice relating to the property market.
Learn more: Investing in property? You’ll need these tips
2. Liveability for tenants
To the person who lives at a leased property, it’s home. If the property is in good condition, requires very little maintenance and is situated in a pleasant place to live, you can usually expect the rental yield to stay healthy. If any of the opposite is true, it may go down.
It’s a good reminder to always check the condition of a property before putting it on the rental market, to make sure it is desirable for tenants and to maximise its long-term rental value.
3. Risk to the property
Risks to your rental property may naturally limit what you can earn from your investment. Three common risks to think about before leasing are:
- Vacancy: Periods of vacancy are periods without income. Market fluctuations and changing demographics can impact vacancy rates even if they’re low today – so keep an eye on the market, or find an expert who will help you, in case you spot a red flag approaching.
- Repairs: Maintenance issues and repairs cost money. Ensuring your property is in decent condition when you lease it, and finding respectful tenants who maintain it, may keep a lid on some of these costs. This is also a good reason to inspect the property regularly, and to screen tenants thoroughly, both of which our team can help you with.
- Regulatory change: There’s not much you can do to prevent regulatory change, but you can at least stay on top of it so you know what’s on the horizon. When new regulations come into force, it can send property owners scrambling for expert help all at once – putting the price up, or availability down. Getting in early saves you this extra hassle.
Why choose MattBlak to manage your property?
We’re the experts who know the Sutherland Shire like it’s our own backyard … because it is! We live here too, and we love this part of the city.
When you lease your investment property with MattBlak, we’ll help you to maximise your investment return and minimise risk by:
- Tackling the relevant tenant paperwork.
- Supervising your property, including handling inspections and maintenance.
- Advising you on changes to the property market which may impact your investment.
- Ensuring the smooth and regular transfer of rental income into your account.
Want to learn more? Find out what your investment property is worth in today’s rental market by requesting a free rental appraisal today. Or, give our team a call and let’s talk about your needs.