Tips & Solutions

Property investor lens on Waterloo 2017

For property investors, Waterloo is perfectly positioned as the next up-and-coming suburb just a stone’s throw from the Sydney CBD.


If you’re in the market for your next investment property, you should take a look at properties in Waterloo. At only a 10-minute drive to the city and with the new Metro rail station under construction that we expect will boost property prices when it opens in 2023, this former working-class suburb is on the move. From traditional working-class roots, the suburb is going through major gentrification, becoming a major hub for young professionals and families moving into the area.


Around the 1820s, Waterloo was becoming established as an industrial centre with the opening of the Fisher and Duncan Paper Mill and the Waterloo Flour Mills. Therefore, this suburb has always been a working class neighbourhood for the people who worked at the various industrial industries in and around the area. 

Today, the area has a large proportion of social housing but many of the old housing developments are undergoing major renovations and face-lifts to aid in gentrification of the area.

Suburb review and lifestyle

In Waterloo, you’ll find a mix of Victorian terrace houses, converted warehouses and modern apartments making up the majority of the residential properties alongside a large social housing component. The most recent arrival is the massive Green Square, an urban development that covers four suburbs including Waterloo.

This comprehensive project is aimed at creating a new town centre using innovative and sustainable design. To increase its value as a new community hub, the Green Square precinct includes a new primary school with additional facilities for community use.

In addition, there is an innovative new library in the Zetland corner, a plaza, an award-winning aquatic centre, Gunyama Park, and several parks and playgrounds. The development will also include a childcare centre and a creative hub. It is estimated that there will be over 30,000 new residential dwellings constructed by 2030.

Green Square will provide living and working space for families close to the city and the airport. 

We believe Green Square will have a ‘halo effect’ on Waterloo and other adjacent suburbs. While money is cheap, this is a great opportunity to secure an investment property in Waterloo.

The current population of Waterloo is a good mix of independent youth (34.6%), maturing adults and families (24.6%) and elderly singles (12.8%).

The suburb has plenty of local shops, funky cafés and restaurants as well as a great art gallery. There are also still a few traditional pubs but these are being upgraded as part of the gentrification of the area.

Property values and yields in Waterloo

Currently, the median property price for houses in this suburb is around $1.3 million while the median price for units is around $880,000. Houses are currently renting for around $698 per week while units are achieving around $600 in rent per week. Houses are seeing an annual rental yield of 2.6% while units are returning a yield of around 3.5%.

Capital growth in Waterloo

The price of houses has risen considerably this year from a median price of around $1 million in November 2020 to around $1.3 million in October 2021. Unit prices have yet to recover, rising only slightly over the past 12 months with a median price of around $832,000 in November 2020 to around $875,000 in October 2021.

This would indicate that there’s plenty of room for growth in the next few years, considering prices in the neighbouring suburbs of Redfern and Surry Hills which are around 25% to 45% more expensive.

Need help managing your Inner West investment property?

As Inner West property management experts, we understand what renters are looking for and can help you with tenants and everyday management so you have peace of mind. See our recently rented properties in Waterloo to get a better idea of what’s available.

Free Property Management Advice, talk to an expert now!

Are you a landlord looking for advice? Do you have questions about these uncertain times? Changes to the rental market or anything specific to Property Management? Book a one-on-one, obligation-free, consultation with Jaime Pratt, Head of Property Management at Vogue Property Managers.

Book your session now:

With over 20 years of property management experience, Jaime will openly provide advice on improving rental return, enhancing your property, attracting quality tenants, and finding ways to alleviate your expenses.