Surry Hills: A Creative Hub for Property Investment

Key Market Insights in Surry Hills

Surry Hills continues to cement its role as Sydney’s city-fringe hub for creative industries, hospitality, and boutique commercial spaces. At Valstar Valuations, we recently assessed the market value of a mixed-use freehold in Surry Hills. ****9 Nov 2025 updated. The property valued as 34 Wentworth Avenue and our valuation was less than 5% from the eventual purchase price ***** This assessment offers a unique case study into the dynamics shaping this tightly held precinct.

Office Leasing Trends

Refurbished creative floors transact at $750–$1,000/m² net face, with incentives in the 25–35% range. Demand remains strong from design, media, SaaS, and advisory tenants. These sectors are driving the need for flexible and inspiring workspaces.

Hospitality and Retail Dynamics

Small-format venues (60–150 m²) typically lease for $800–$1,300/m² gross. Prime corner sites can achieve rates of $1,600/m² or more. This trend highlights the value of location and visibility in attracting customers.

Sales Evidence and Recent Transactions

Recent transactions illustrate the ongoing appetite for boutique freeholds. Notable sales include:

• 78 Campbell Street: Sold for $8.075 million, yielding approximately 4.78%.

• 131 Devonshire Street: Sold for $6.6 million, leased to Airtree Ventures at $887/m².

  
  

These figures demonstrate the strong market interest in well-positioned properties.

Market Value Assessments

• AS IS: Vacant possession basis, market value assessed at $3.5 million.

• Refurbishment: Repositioned as a boutique office with modern amenities, market value is $5.3 million.

• Full Redevelopment: Addition of two commercial levels plus a communal rooftop, market value is $8.7 million.

  
  

Implications for Property Owners and Investors

The Surry Hills market rewards well-located, character-rich assets that are refurbished to match tenant demand. Valuation outcomes demonstrate how considered investment into design, fitout, and tenant mix can drive substantial value uplift. This is particularly true when planning frameworks allow for additional floor space.

Investors should consider the potential for increased returns through strategic renovations and repositioning of properties. Understanding the local market dynamics is crucial for making informed decisions.

Why Choose Valstar Valuations?

With decades of experience and a deep understanding of specialised commercial assets, Valstar Valuations provides independent, evidence-based advice to developers, investors, and corporate clients. Our expertise spans various valuation methodologies, including income capitalisation, direct comparison, and feasibility studies.

We pride ourselves on clarity, compliance, and strategic insights. Whether you’re acquiring, repositioning, or redeveloping, Valstar Valuations is your trusted partner in navigating Sydney’s most competitive markets.

Conclusion

In conclusion, Surry Hills stands out as a vibrant area for property investment. The combination of creative industries, strong demand for commercial spaces, and the potential for value uplift makes it an attractive option for property owners and investors.

For more information on property valuations and insights, feel free to reach out to us. We are here to assist you in making informed decisions in the dynamic Sydney property market.