Geographically targeted crime control is a controversial attempt to alleviate crime, which risks the displacement of crime into neighbouring areas. The 2014 Sydney lockout laws have decreased the nightlife economy and violence in the entertainment districts, having displaced them into neighbouring areas. We investigate the effect of the Sydney lockout laws on rental prices in the displacement areas, and find a relatively weak and short‐lived negative effect on small dwellings and a persistent positive effect on large dwellings. Our results indicate the long‐term positive effect of the lockout laws on the land value of surrounding areas, despite reported crime displacement.