If you are a first-home buyer, seasoned investor or someone planning your next move, you may be wondering which suburb offers the best value for money. It may also be a consideration about how you might go about financing a purchase without overextending yourself.
Well, while the official cash rate, as determined by the Reserve Bank of Australia (RBA), is currently 3.85% and potentially lowering, property prices are still expected to rise. At least, according to KPMG, who project a 3.3.% increase in Sydney house prices in 2025.
So, perhaps the savvier questions to ask yourself are where you should be looking and how you can fund that purchase in a way that actually works for your long-term goals?
With them in mind, this post will highlight the most notable Sydney suburbs worth focusing on this year, and the smartest ways you can finance them.
Finance Guidance
Before we highlight the suburban hotspots worth homing in on, it’s worth briefly touching on how to finance a property purchase in the Harbour City.
Unless you are an outright cash buyer or have an affluent relative who can gift you the money, you are going to need to take out a mortgage.
Given the complexity and dynamism of the Sydney Housing market, it is worth getting professional advice on your borrowing power from an expert, such as an AFMS mortgage broker Sydney specialist.
By doing this, they can help you compare loan products, understand bank policies, and introduce you to lender rebates or schemes you may not know about. This move could help you to secure a mortgage and save yourself thousands of dollars in the process.
Best Suburbs to Buy in Sydney in 2025
You might not be aware of this, but Greater Sydney consists of over 650 suburbs, which are spread across 33 local government areas.
In total, there are around 1.8 million occupied private dwellings and at any given time, that can be between 4500 and 9000 homes listed for sale on websites like Real Estate.com.au or Domain.com.au.
Given the sheer number of suburbs, there might be some that do not readily spring to mind yet may have properties that suit your budget and needs.
Here are six you may that you may not have considered.
1/ Wolli Creek
Wolli Creek offers one of the best combinations of transport access and affordability in the whole of Sydney.
With a direct train line to the CBD, Sydney Airport close by, and views over the Cooks River, this suburb is starting to attract young professionals and downsizers.
Units here are still reasonably priced relative to other inner-south options, which makes it an ideal buy for investors or first-home buyers.
2/ Riverwood
Idyllic-sounding Riverwood, in Sydney’s south-west, is benefiting from the ripple effect as prices push westward.
As a result, you can find freestanding homes here for less than the citywide median. On top of that, there are ongoing upgrades to local shopping centres and schools.
At present, it is a popular suburb with families. So, if you purchase here, you can expect to see long-term capital growth as its neighbouring suburbs gentrify.
3/ Parramatta
Parramatta continues to cement its reputation as Sydney’s secondary city centre, and with its light rail, metro rail, commercial precincts and riverside developments, it’s got everything a smart investor could ask for.
Right now, there’s strong rental demand from both professionals and students, which has resulted in property values steadily rising.
It presents a solid option for investors and owner-occupiers who want inner-city amenities without inner-east prices.
4/ Marsden Park
For those looking at house-and-land packages or modern masterplanned communities, Marsden Park is hard to beat.
This area is filled with families and features new schools, parklands, and shopping hubs. At the time of writing, it’s still affordable (relatively speaking), but with more infrastructure on the way, that won’t last forever.
5/ Bexley
Bexley is one of those suburbs that often fly under the radar.
Located just 13km from the city, it boasts leafy streets, quality schools and a mix of federation homes and new builds that are attractive to young families. It is also close to Kogarah’s hospital and train station, which adds to its value proposition.
6/ Cronulla
For those with a higher budget who are chasing both capital growth and lifestyle, Cronulla is still one of the best picks.
Here, beachside living, cafes, direct train access to the city, and a mix of high-end apartments and classic homes make it popular with professionals and downsizers.
Best of all, at present, rental returns are strong, and vacancy rates remain low, which is a good recipe for success.
How to Finance a Property in These Suburbs the Smart Way
Finding a property in a suburb you like is one thing. However, being able to afford it is another. So, given that house prices are expected to rise and it is reasonable to assume that interest rates will one day increase, how you structure your loan is just as important as where you buy.
Your mortgage broker will be able to give you more specialist advice. But here is an overview of some smart ways you can finance a property in your chosen suburb.
- Use an Offset Account
Offset accounts let you use your savings to reduce the interest calculated on your home loan. While giving you the flexibility to access your funds if needed, over time, you can save tens of thousands of dollars in interest.
- Guarantor Loans
If your parents own a home, they may be able to guarantee a portion of your deposit. Doing this can help you avoid paying Lenders Mortgage Insurance (LMI) and get into the market sooner.
Should this be an option you choose, it is important to make sure everyone understands the risks, responsibilities, and implications involved.
- Interest-Only Loans for Investors
While they are not for everyone, interest-only loans can improve your cash flow in the early years of owning an investment property. This might be especially useful if you’re renovating or waiting for capital gains.
That said, if you do this, you must have a plan for when the interest-only period ends.
- Use the First Home Buyer Choice Scheme
In NSW, eligible buyers can opt to pay an annual property tax instead of stamp duty under the First Home Buyer Choice scheme.
For many, it’s a financially smarter way to enter the market without facing the upfront pressures.