15 Best Suburbs to Live in NSW If You're Buying Your First Home in 2025

Buying your first home is a big step, and where you buy matters just as much as what you buy.

In 2025, with housing markets stabilising post-rate hikes and new infrastructure boosting outer suburbs, the opportunities for first-home buyers in New South Wales (NSW) are promising. But choose the wrong suburb, and you could pay the price: both financially and in how you live day to day.

Let’s dive into why having the right suburb choice is critical and highlight 15 of the best suburbs to live in NSW for first-home buyers this year.

The NSW property market is full of options, but not all of them are right for first-home buyers. Our Newcastle mortgage brokers can help you narrow down the best-fit suburbs based on your budget, goals, and lifestyle.

Why Choosing the Right Suburb in NSW Matters

Let’s face it. Not all suburbs are created equal. When you're a first-home buyer, choosing wisely isn’t just smart, it’s essential.

Here’s why your suburb choice in NSW could shape your finances and lifestyle for years:

• Price Differences Can Be Massive: In 2024, the median house price in Sydney sits at $1.1 million, but you can find homes under $700,000 in areas like Wagga Wagga or Maitland. That’s a difference of over 35%, money that could cover renovations, mortgage repayments, or simply make buying possible. (Domain)
  
  
• Growth Potential Varies Widely: Some suburbs like Box Hill have seen price growth of over 9.4% year-on-year, while others remain flat or decline. A smart suburb pick today could mean thousands more in equity by 2025. (CoreLogic)
  
  
• Rental Yields Are Not Equal: Suburbs like Coffs Harbour are pulling in 4.5%+ rental yields for houses, compared to Sydney’s average of 2.9%. Great news if you're planning to rent it out. (SQM Research)
  
  
• NSW’s Infrastructure Pipeline is Suburb-Specific: Big-ticket projects like the Western Sydney Airport Metro and Parramatta Light Rail are transforming certain areas, and not others. Buying near future infrastructure can drive up property values significantly. (NSW Government Infrastructure Pipeline)

Looking ahead to 2025, CoreLogic and NAB forecast steady national growth of 3–5%, with regional NSW expected to outperform due to affordability pressures and lifestyle shifts. Suburbs within 60–90 minutes of Sydney, especially those along new transport routes, are tipped to benefit most. 

15 Best Suburbs to Live in NSW

Finding your first home isn’t just about price; it’s about where you’ll build your future. From beachside suburbs to leafy family hubs, these 15 New South Wales locations strike the right balance of affordability, lifestyle, and investment potential.

Let’s break them down.

1. Jannali – A Quiet Gem in the Sutherland Shire

Located in Sydney’s south, Jannali is a peaceful, family-friendly suburb with easy train access to the CBD. It offers larger blocks, leafy streets, and a relaxed vibe, perfect for young couples or families. 

Jannali High School and the Georges River are nearby, and the local village centre has everything from cafés to childcare.

Ideal for: Young families and buyers wanting space without moving too far from the city.

• Median House Price: $1.05M
  
  
• Rental Yield: 3.4%
  
  
• Population Growth: Stable with steady turnover
  
  
• Key Infrastructure: T4 train line, Jannali Shopping Village, proximity to Princes Hwy
  
  

2. Ashfield – Multicultural Hub With Solid Infrastructure

Ashfield is a buzzing Inner West suburb with an unbeatable location, just 9km from Sydney CBD. It’s packed with eateries, schools, and rapid train links. Ashfield Mall and local Chinese and Vietnamese restaurants give it a strong cultural flavour.

Ideal for: Young professionals or first-gen Australians looking for community and convenience.

• Median Unit Price: $730K
  
  
• Rental Yield: 4.1% (units)
  
  
• Population Growth: High turnover, strong rental demand
  
  
• Key Infrastructure: Ashfield Station, schools, A22 arterial road
  
  

3. Box Hill – New Homes and Future Growth

A North West Sydney hotspot, Box Hill is booming with new estates, modern homes, and young families. It’s part of the NSW Government’s growth corridor, with future schools, parks, and transport planned. Close to Rouse Hill Metro and town centre.

Ideal for: Buyers wanting new homes, long-term growth, and a blank canvas.

• Median House Price: $1.25M
  
  
• Rental Yield: 3.2%
  
  
• Population Growth: 18.3% annually
  
  
• Key Infrastructure: Planned town centre, Tallawong Metro, new public schools
  
  

4. Hornsby – A North Shore Entry Point

Hornsby combines bushland beauty with urban access. It’s got a massive Westfield, direct train to the city, and great schools like Barker College. Close to Berowra Valley National Park, it’s perfect for outdoorsy types.

Ideal for: Nature lovers and families wanting good schools and amenities.

• Median House Price: $1.52M
  
  
• Rental Yield: 3.3%
  
  
• Population Growth: Moderate, family-driven
  
  
• Key Infrastructure: T1 rail line, Hornsby Westfield, Hornsby Ku-ring-gai Hospital
  
  

5. Faulconbridge – Blue Mountains Escape on a Budget

Set in the lower Blue Mountains, Faulconbridge offers fresh air, quiet living, and homes under $700K. It’s great for remote workers or those craving space. It’s also home to Sir Henry Parkes' grave and bushland tracks.

Ideal for: Remote workers, young families, and peace-seekers.

• Median House Price: $660K
  
  
• Rental Yield: 4.2%
  
  
• Population Growth: Slow but steady
  
  
• Key Infrastructure: Great Western Hwy, Blue Mountains rail line

6. Coogee – Beach Living Without the Bondi Price Tag

Coogee brings beachside living with a more laid-back feel than Bondi. It’s got scenic coastal walks, surf, and excellent cafés. Units are more affordable, and rental demand is high thanks to proximity to UNSW and Randwick hospitals.

Ideal for: Young professionals and lifestyle-focused buyers.

• Median Unit Price: $1.1M
  
  
• Rental Yield: 3.5%
  
  
• Population Growth: Moderate, rental-heavy
  
  
• Key Infrastructure: Coogee Beach, bus connections, coastal walkway
  
  

7. Maroubra – Surf, Space, and Suburban Feel

Maroubra offers the surf lifestyle with more space than other east coast suburbs. Great transport, schools, and family housing make it popular with long-term residents. The Pacific Square shopping centre adds convenience.

Ideal for: Families, professionals, and beach lovers.

• Median House Price: $1.9M
  
  
• Rental Yield: 2.8% (houses)
  
  
• Population Growth: Stable
  
  
• Key Infrastructure: Maroubra Junction, express buses, shopping centre
  
  

8. Coffs Harbour – Coastal City With a Community Feel

One of NSW’s most liveable regional cities. Coffs Harbour has jobs, beaches, and lifestyle perks. The local airport connects to Sydney and Brisbane, and the health and education sectors are growing fast.

Ideal for: Sea-changers, young families, and work-from-home buyers.

• Median House Price: $765K
  
  
• Rental Yield: 4.6%
  
  
• Population Growth: +1.8% p.a.
  
  
• Key Infrastructure: Coffs Airport, hospital, Pacific Hwy upgrades
  
  

9. Hyland Park – Hidden Coastal Village Charm

This small community near Nambucca Heads is quiet, green, and affordable. Ideal for those escaping city life, with beach access, bushland, and a community feel. Locals enjoy fishing, scenic walks, and a slower pace that’s hard to find elsewhere.

Ideal for: Retirees, creatives, and low-key lifestylers.

• Median House Price: $570K
  
  
• Rental Yield: 4.8%
  
  
• Population Growth: Low but steady
  
  
• Key Infrastructure: Pacific Hwy, Nambucca retail & health services
  
  

10. Dulwich Hill – Inner West Without the Chaos

Close to the city but quieter than Newtown or Marrickville. Dulwich Hill has a great café scene, light rail, and heritage homes. It suits buyers wanting inner-city perks with less intensity. Weekend markets, leafy streets, and a strong community vibe make it a hidden gem in the Inner West.

Ideal for: Urban professionals and small families.

• Median Unit Price: $775K
  
  
• Rental Yield: 3.9%
  
  
• Population Growth: Flat
  
  
• Key Infrastructure: Light rail, local schools, shops
  
  

Whether you're eyeing the coast, the city, or a regional retreat, our Newcastle mortgage brokers got insider insights and tailored home loan solutions to get you there faster. First-home buying doesn’t have to be overwhelming when you’ve got the right team.

11. Croydon – Character Homes Close to the City

Croydon boasts Federation homes, tree-lined streets, and strong school zones. It's one of the best-kept Inner West secrets for families. Fast train access to Central in 15 mins is a huge win. Its peaceful streets and village feel offer a rare blend of charm and convenience close to the city.

Ideal for: Families who want charm and convenience.

• Median House Price: $2.1M
  
  
• Rental Yield: 2.7%
  
  
• Population Growth: Stable
  
  
• Key Infrastructure: Croydon Station, PLC Sydney, Burwood shops
  
  

12. Kingsford – Student-Friendly With Growth Upside

Just south of Randwick, Kingsford is popular with students and investors. It’s close to UNSW and benefits from the new light rail line. Rental demand is consistent, and development is increasing. Local eateries along Anzac Parade and easy access to beaches add to its lifestyle appeal.

Ideal for: Investors, students, and first-time landlords.

• Median Unit Price: $780K
  
  
• Rental Yield: 4.2%
  
  
• Population Growth: Increasing
  
  
• Key Infrastructure: UNSW, light rail, Anzac Parade access
  
  

13. Balmain – Historic Charm Meets Urban Living

Balmain offers village charm, pubs, and harbour views. Ferry to the CBD in 15 mins, plus heritage homes and modern apartments. Prices are higher, but value is solid. Its vibrant main street, local markets, and historic architecture make it one of Sydney’s most character-filled suburbs.

Ideal for: Professionals wanting lifestyle with capital growth.

• Median Unit Price: $1.2M
  
  
• Rental Yield: 3.1%
  
  
• Population Growth: Flat
  
  
• Key Infrastructure: Ferry, pubs, shops
  
  

14. Cammeray – North Shore Living for Less

Cammeray is quiet, leafy, and close to North Sydney. It has excellent parks and a friendly community vibe. Great for those who want proximity without the Mosman price tag. With golf courses, harbour views, and trendy cafés, it offers a relaxed lifestyle just minutes from the city.

Ideal for: Small families, couples, and downsizers.

• Median House Price: $2.5M
  
  
• Rental Yield: 2.9%
  
  
• Population Growth: Stable
  
  
• Key Infrastructure: Express buses, golf course, Cammeray Park
  
  

15. Neutral Bay – Harbour Suburb With Strong Long-Term Returns

Close to the city, Neutral Bay mixes buzz with comfort. Great eateries, buses to CBD, and a popular choice for young professionals. Prices are high, but growth is steady. Its lively bar scene, harbour walks, and proximity to North Sydney make it ideal for an active, connected lifestyle.

Ideal for: High-income first-home buyers and investors.

• Median Unit Price: $980K
  
  
• Rental Yield: 3.3%
  
  
• Population Growth: Flat
  
  
• Key Infrastructure: Buses, ferry, Military Rd shopping strip
  
  

Sources: CoreLogic, Domain, SQM Research, NSW Government. Note that market values tend to fluctuate over time. Hence, it’s always best to consult with your real estate agent for the latest property prices.

You’ve found the suburb - now let’s get you the loan to match. From low-deposit options to exclusive lender deals, our Newcastle mortgage brokers help first-home buyers get across the line with less stress and more confidence.

Frequently Asked Questions (FAQs)

What is the best suburb to live in NSW?

It depends on your needs. For families, suburbs like Jannali and Croydon offer great schools and space. If you want lifestyle and convenience, Coogee or Dulwich Hill are excellent picks. Regional buyers might love Coffs Harbour or Hyland Park.

What suburbs will boom in NSW?

Emerging growth suburbs include Box Hill, Kingsford, and Coffs Harbour, thanks to new infrastructure, housing developments, and lifestyle demand. Areas near major transport projects tend to perform well.

Where not to invest in NSW?

Be cautious with suburbs that have oversupply of apartments, low demand, or poor transport links. Parts of Sydney’s far west with little infrastructure or stagnating job markets may offer lower returns in the short term.

What is the most livable town in NSW?

Coffs Harbour often ranks highly for its mix of lifestyle, affordability, and services. It offers coastal living, good schools, a hospital, airport, and growing employment opportunities, all without the Sydney price tag.

What are the types of home loans available for first-time buyers in New South Wales?

Common options include:

• Variable-rate loans
  
• Fixed-rate loans
  
• Split loans (part fixed, part variable)
  
• Low-deposit or 5% loans with LMI
  
• First Home Guarantee Scheme (government-backed)

Working with a mortgage broker can help you compare and choose the right fit.

Conclusion

Finding the best suburbs to live in NSW as a first-home buyer in 2025 doesn’t need to feel overwhelming. Whether you're chasing beach vibes, a quiet family-friendly street, or a growing regional hub, there’s a suburb out there that ticks all the right boxes. 

With the right loan and the right advice, you can get into the market with confidence and peace of mind.

If you're unsure where to start, that’s exactly what we’re here for. At Mortgage Brokers Newcastle, we offer free consultations to help you explore your options, understand your borrowing power, and find the right home loan for your dream location.

Call us today on 02 4920 6468 or jump online to book your free first-home buyer session.