Once a haven for workers, with gentrification beginning in the 1960s, Paddington boasts possibly the greatest selection of terrace homes and iron lace in Sydney, as well as cosy pubs and restaurants, and high-end shopping.
Paddington is a heritage conservation area. Part of Gadigal land, Paddington as an area was settled by Europeans as early as 1803. However, the name of the suburb came into existence only when James Underwood subdivided his original land grant in 1839 and named it Paddington after the London suburb.
Construction of what is known today as Victoria Barracks began in 1841, and the housing of the carpenters, stonemasons, builders, blacksmiths, plasterers, fencers and coachbuilders along the ridge set the tone for the area. Wealthier gentlemen and merchants built grand homes but mostly on the slopes that lead down to present-day Rushcutters Bay.
Paddington Reservoir was completed in 1866 and held 9092 megalitres. Even before the reservoir was built, the gin distillery of the original landholders Robert Cooper, James Underwood and Francis Ewen Forbes was using water supplied by a stream that followed the path of what is now Cascade Street, ending in a waterfall that was known as both The Cascades and Glenmore Falls before joining another creek by Trumper Park.
A shopping mecca at the Bondi Junction end of Oxford Street, plus a robust café society, attracts professionals, families and expats who appreciate the beautiful homes, proximity to great local schools in the nearby suburbs of Rose Bay, Edgecliff and Bellevue Hill, and art house cinemas, Chauvel and Verona.
Paddington is also home to great restaurants; in fact, it is a breeding ground for celebrity chefs such as Matt Moran, who had his first restaurant in a Paddington pub, and Manu Fieldel, whose first solo venture was in Paddington. Others such as Guillaume Brahimi, best known for Guillaume at the Sydney Opera House, established his eponymous Guillaume on Hargrave Street before moving to the Four in Hand pub.
If it’s open space you’re after, Centennial and Moore Parks are close by, while Trumper Park is a bushland oasis in the middle of this densely populated area. Sports fans are well served with Trumper Park Tennis Centre and the legendary White City Stadium, Trumper Oval cricket ground and playing fields off Nield Avenue, as well as several other children’s playgrounds.
Are you an art lover? For a pleasant Saturday, head to Hampden Street next to Trumper Park to visit the Paddington Art Precinct. (While Paddington has many other galleries, these have the advantage of being walking distance apart.) You’ll find fine Australian and international art pieces at galleries including Martin Brown Fine Art, Australian Galleries, Sarah Cottier Gallery, Roslyn Oxley9 Gallery, Wagner Contemporary and more.
Once you’ve had your fill of art, make your way into Trumper Park. Head up the hill and you’ll find yourself right by The Lord Dudley Hotel, a pub best enjoyed in winter when the fire is crackling in the grate.
Books and arts and crafts market
Bibliophiles love Berkelouw Book Store and Café for its range of new, used and rare books. The renowned Paddington Market, held every Saturday in the grounds of the Paddington Uniting Church, offers shoppers an eclectic mix of fashion, art, food, jewellery and second-hand and antique goods.
Paddington home prices and rental yield
In Paddington, the median house price is sitting at $2,690,000, while the median price for units is $922,500 (as of the end of May 2021).
The median rent for houses is $1,050 and for units, $450 p.w.
While sales prices for units remained flat throughout 2020 and into 2021, home prices showed a slight uptick in April 2021.
Capital growth has slowed, although delivering capital gains of 7.32% over the past 12 months (as of the end of May 2021). Over a three-year period, growth sits at 13.25% in median prices.
Yield is sitting at around 2.13%, possibly because there is little movement in the suburb.
Adding value to your Paddington investment property
To ensure high occupancy and a better-quality tenant, landlords need to keep their properties relevant.
Top things to do to keep your Paddington rental top of mind
- Make it pet-friendly. The incidence of pet ownership in the Eastern Suburbs and the Inner West is increasing as people continue to work from home and live in smaller households. These renters need understanding landlords.
- Keep up the maintenance. Things wear out, paint and flooring gets tired. To give your property the best chance of gaining a long-term tenant, keep your property fresh.
- Add amenities like air conditioning, ceiling fans or a dishwasher.
- Ensure you and your property manager communicate regularly with tenants to ensure they’re happy and they know you’re there for them.
Recently leased properties
In Paddington, Vogue Property leased 1 property in the last 12 months (as at June 2021).
You can view all our recently leased Paddington properties to get a good feel for properties in the area.