Castlecrag NSW Property Investment

Willoughby · 2068 · Score: 72/100 · Buy

Median House Price
$4.34M
Rental Yield
2.2%
Vacancy Rate
1.6%
Median Weekly Rent
$1850/wk
Median Unit Price
$1.57M
Population
2,965
Days on Market
63 days
Annual Growth
15.0%
AI Investment Analysis

Castlecrag NSW Investment Brief

BUY2.2% gross yield on a $4,343,823 median.

THE MARKET

Castlecrag has compounded at 3.6%/yr over 5 years — a house that cost $3,639,765 in 2021 is worth $4,343,823 today. Properties are sitting on market for 63 days (buyers have negotiating room). At the same growth rate, today's median reaches $5,184,070 by 2031.

  • Median house: $4,343,823 | Units: $1,572,017
  • Gross yield: 2.2% | Net yield: 0.7%
  • 5yr price CAGR: 3.6%/yr | 3yr forecast: 5.3%/yr
  • Population: 2,965 | Owner-occupier rate: 73% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 1.6% (improving) | Rental demand: High
  • Median weekly rent: $1,850/wk | Days on market: 63 (worsening)
  • Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.

INFRASTRUCTURE & CATALYSTS

  • Beaches Link Tunnel (Sydney) (Announced)
  • New Intercity Fleet (NSW Trains) (Under Delivery)
  • Sydney Metro City & Southwest (Operational)
  • Sydney Gateway (Under Construction)
  • Transport: Crows Nest station 3.3km away

BULL CASE

If Castlecrag maintains 3%+ annual growth and vacancy stays below 1.1%, median prices could reach $4,995,396 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Castlecrag pull back 10-15% from $4,343,823, with vacancy rising to 2.9% and rental yields softening as tenants gain leverage.

KEY RISKS

  • Premium price point limits buyer pool and increases interest rate sensitivity

COMPARABLE MARKETS

  • Bondi (NSW): $4,422,566 median, 2.4% yield, 7.1% 1yr growth
  • Burraneer (NSW): $3,381,233 median, 2.8% yield, 8.5% 1yr growth
  • Chatswood (NSW): $3,338,902 median, 2.1% yield, 2.5% 1yr growth

THE PLAY

Castlecrag presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.2% and prioritise properties with value-add potential. Consider timing entry around the current recovery phase of the market cycle.

  • Entry range: $3,909,441$4,778,205
  • Minimum gross yield to target: 4.5%
  • Watch signal: vacancy staying below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.

Gentrification Index

Early gentrification signals5.0/10
High SEIFA decile — already upgraded or established affluent area
Above-average capital growth (7.1% CAGR)
Inner/middle ring location (7.6km to CBD) — high gentrification corridor
Active development pipeline (1871 approvals) — supply attracting new residents
Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

low confidence
1yr Forecast
7.1%
p.a.
2yr Forecast
6.5%
p.a.
5yr Forecast
5.6%
p.a.

Basis: 5yr CAGR 7.1% + 10yr CAGR 8.9%

Growth drivers
  • +Low rental vacancy (1.6%) — constrained supply
  • +Premium transport infrastructure — supports long-term capital growth
Headwinds
  • Slow market (63 days avg) — buyer hesitancy
  • High supply pipeline (1871 new approvals) — may cap price growth

Suburb Metric Thresholds

11 green2 yellow3 red
Rental Vacancy Rate
1.6 high impact
Days on Market
63 high impact
Weekly Rent (house)
1850 medium impact
5yr Price CAGR
7.07 high impact
10yr Price CAGR
8.9 high impact
1yr Price Growth
15 medium impact
Population Growth
0.75 high impact
Median Household Income
3232 medium impact
Unemployment Rate
3.6 medium impact
Public Transport Score
38 medium impact
School Zone Quality
6.8 medium impact
Distance to CBD
7.56 medium impact
SEIFA Advantage/Disadvantage
10 medium impact
Owner Occupier Rate
73.3 medium impact
Gross Rental Yield (%)
2.21 high impact
Net Rental Yield (%)
0.71 high impact

Macro Environment

Macro Indicators

Cash Rate

4.35%

0.25%

Cash rate as at 2026-05-06 · Credit data 2026-04

Suburb Supply & Demand

Suburb Supply Pipeline — New Dwelling Approvals

127

2020

281

2021

628

2022

611

2023

224

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2068

Most disadvantagedLeast disadvantaged

Decile 10 of 10 — Low disadvantage

Population

17,450

Education (IEO)

10/10

Econ. Resources (IER)

10/10

10-Year Investment Projection

Modelled on Castlecrag NSW data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $1850/wk median rent for Castlecrag. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Willoughby PS
PrimaryGovernment
8.9/10
Willoughby GHS
SecondaryGovernment
8.9/10
Mosman HS
SecondaryGovernment
8.5/10
Cammeraygal HS
SecondaryGovernment
8.5/10

These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.