Thinking of selling your Surry Hills investment property?

ou’ve held it for years. The rent has been strong, the tenants have been reliable, and the capital growth has been real. But something has shifted, the lease is expiring, the CGT calculation is starting to look favourable, or you simply want to convert that equity into something else. Whatever the reason, you’re now asking the question most Surry Hills investors ask at some point: is now the right time to sell?

This page is written for you specifically, not for the first-home buyer or the downsizer, but for the landlord who owns a Surry Hills investment property and wants an honest, data-driven answer to that question.

Why Surry Hills investment conditions currently favour vendors

The data for Surry Hills in 2026 tells a compelling story for investor-vendors:

Sources: CoreLogic, HtAG Analytics, PropTrack – early 2026

What this means for you as a vendor:

The 0.78% vacancy rate is one of the lowest of any inner-city Sydney suburb, meaning your property is almost certainly leased and generating income right now. That same tight rental market means buyers, particularly investors purchasing your property as a going concern, can underwrite their own rental income projections with high confidence. A well-leased Surry Hills investment property in 2026 is a compelling asset for a buyer, and a compelling sale for a vendor who has held through the growth cycle.

The 14.8% annual house price growth for Surry Hills houses means that for landlords who purchased five or more years ago, the capital gains position is likely strong. The question is not whether you have made money, it is whether the current conditions represent the optimal exit point.

For more on current market conditions, read our Surry Hills Property Market Update 2026

Is now the right time?

Four scenarios where selling makes sense

Surry Hills investment conditions in 2026 favour vendors. Here are the four situations where acting now makes the strongest case.

Selling tenanted vs vacant possession, what produces the better result?

This is the most common question Murray Property receives from Surry Hills investor-vendors and the honest answer is: it depends on your property type.

For Surry Hills houses and terraces, sell with vacant possession The buyer for a Surry Hills terrace is overwhelmingly an owner-occupier, a professional couple, a family, or a downsizer who wants to move in immediately. A tenanted terrace narrows your buyer pool to investors only, which reduces competition and typically results in a lower sale price. The owner-occupier premium in Surry Hills, the price difference between what an owner-occupier will pay versus what an investor will pay, is real and can be $150,000–$300,000 for a quality terrace. Vacant possession is almost always the better outcome for terrace vendors.

For Surry Hills units and apartments, case by case Units attract a broader mix of owner-occupier and investor buyers. A well-leased unit with a reliable long-term tenant, strong rental history and a lease with three to six months remaining can actually be attractive to an investor buyer who wants immediate income without the cost and delay of finding a new tenant. In this scenario, selling tenanted may achieve a comparable result to vacant possession. However, if you have a tenancy that is periodic (month to month), giving notice before going to market is usually the cleaner approach.

Read our full guide to selling a tenanted property in Darlinghurst and Surry Hills

Notice requirements, what the law says

Under the NSW Residential Tenancies Act 2010, the notice requirements for ending a tenancy depend on the type of tenancy agreement and the reason for ending it.

Note: tenancy law is subject to change. Always confirm current requirements with your solicitor or the NSW Fair Trading website before serving any notice.

CGT planning, the key considerations

Capital gains tax is one of the most significant financial variables in an investment property sale and one of the most commonly misunderstood. Here are the key considerations specific to Surry Hills investment property vendors:

The 50% CGT discount If you have held your Surry Hills investment property for more than 12 months, you are eligible for the 50% CGT discount, meaning only half of your capital gain is included in your assessable income in the year of sale. For a property that has grown significantly in value, this discount is substantial.

Timing settlement within a financial year Your capital gain is assessed in the financial year in which the contract is exchanged, not the year of settlement. If you exchange in June, the gain falls into one financial year; if you exchange in July, it falls into the next. If you have variable income, a lower-income year ahead, for example, strategic timing of exchange can reduce your effective tax rate on the gain. This is a matter for your accountant, not your real estate agent, but it is worth planning in advance.

Principal place of residence exemption, partial If the property was your principal place of residence for part of the period you owned it, you may be eligible for a partial CGT exemption. This is a complex calculation and requires advice from a qualified tax professional.

Land tax If you are currently paying land tax on your Surry Hills investment property, selling removes that ongoing liability, which is relevant to the net return calculation.

Note: This information is general in nature and does not constitute tax advice. Consult a qualified accountant before making decisions based on CGT considerations.

What your Surry Hills investment property is worth in 2026

Suburb-wide medians are a useful reference point but they will not tell you what your specific property is worth. The variables that matter, your street, your building, your floor level, your aspect, your strata situation, your current tenancy, require a genuine on-site assessment.

Working price ranges for Surry Hills investment property in 2026:

Houses and terraces:

• Renovated 3-bed terrace, premium street (Bourke, Riley, Fitzroy, Albion): $2.8m – $3.5m
• 2-bed terrace, well-presented, off-street parking: $1.8m – $2.4m
• 2-bed terrace, requires work or busier street: $1.4m – $1.8m

Units and apartments:

• 2-bed apartment, car space, quality building, good aspect: $1.1m – $1.5m
• 2-bed apartment, no parking or dark aspect: $850,000 – $1.1m
• 1-bed apartment, well-presented: $700,000 – $900,000
• Studio, older block: $500,000 – $650,000

For a full breakdown by property type and street, see our Surry Hills property value guide for 2026\

Frequently asked question, selling a Surry Hills investment property

Can I sell my Surry Hills property while it is tenanted? Yes. You can sell with the tenancy in place, the buyer takes on the existing lease. For houses and terraces, vacant possession typically achieves a higher price by accessing the owner-occupier buyer pool. For units, selling tenanted can be appropriate where the tenancy is strong and the buyer pool is investor-dominated. We will advise specifically for your property at appraisal.

How much notice do I need to give my tenant? For a periodic (month to month) tenancy, 90 days written notice is required in NSW. For a fixed-term tenancy expiring, 30 days notice is required. Confirm current requirements with your solicitor before serving any notice.

Will my tenants cooperate with inspections during the sale campaign? In most cases, yes, tenants who have been well-managed and given reasonable notice tend to cooperate with inspection access. Murray Property’s experience managing Surry Hills tenancies means we know how to communicate with tenants through a sale campaign in a way that minimises friction and maintains goodwill.

When is the best time of year to sell a Surry Hills investment property? Spring (September to November) and Autumn (March to May) are consistently the strongest selling seasons in Surry Hills. Mid-December to mid-January is the weakest period. If your lease is expiring, try to time your campaign launch for one of the active selling seasons, even a two-week delay in notice can make the difference.

How do I get the best price, auction or private treaty? For Surry Hills houses and terraces, auction. The suburb’s 71% clearance rate and tight stock create ideal auction conditions. For units in larger buildings with a predominantly investor buyer pool, private treaty is sometimes more appropriate. We give you a specific recommendation at appraisal.

Why Murray Property for your Surry Hills investor exit

Most selling agents understand how to sell to owner-occupiers. Fewer understand the specific dynamics of an investor exit, the tenancy management, the timing around leases, the CGT planning window, and the decision between tenanted and vacant possession sale.

Murray Property is different because we manage Surry Hills investment properties as well as sell them. Michael Murray has over 22 years of experience in both the sales and property management sides of the Surry Hills market, which means when you come to us with an investment property to sell, we understand it from the landlord’s perspective, not just the vendor’s.

What that means in practice:

• We can advise on the optimal timing of your sale relative to your lease expiry, and we know the tenant notice process from having managed it hundreds of times
• We have an active database of both investor buyers and owner-occupier buyers for Surry Hills, meaning we can present your property to the full buyer pool, not just one segment
• We understand the strata landscape in Surry Hills buildings at a building-by-building levewhich means we can advise you honestly on whether a building’s strata situation is likely to affect your sale
• We provide a full cost and net proceeds projection at appraisal, so you know exactly what you will walk away with before you commit to anything

Ready to find out what your Surry Hills investment property is worth?

A conversation with Murray Property costs nothing and commits you to nothing. We will give you an honest assessment of what your property could achieve in the current market, the optimal strategy for your specific tenancy situation, and a clear picture of what you will net after all costs.

Call us: (02) 9371 5901

Email: home@murrayproperty.com.au

Visit: 251 Oxford Street, Darlinghurst NSW 2010

Further reading

• Sell your property in Surry Hills
• Surry Hills property market update — 2026
• What is my Surry Hills property worth in 2026?
• Selling process guide — Surry Hills
• Selling a tenanted property — landlord exit guide
• The landlord’s guide to Darlinghurst and Surry Hills