The appearance of a series of swastikas on a mural and a shop in Sydney's east is being investigated by police.

Officers were called to Queen Elizabeth Drive on Bondi Beach early on Sunday following reports of malicious damage.

Wentworth MP Kerryn Phelps and Liberal candidate for the federal seat Dave Sharma condemn the act, and both state via twitter anti-semitism, racism, and hatred in all its forms has no place in the community.