Denman NSW Property Investment

Muswellbrook · 2328 · Score: 47/100 · Caution

Median House Price
$600K
Rental Yield
5.0%
Vacancy Rate
3.0%
Median Weekly Rent
$580/wk
Median Unit Price
$198K
Population
1,821
Days on Market
39 days
Annual Growth
11.8%

Denman Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$658.94/night
Occupancy Rate
40%
Est. Annual Revenue
$96K
AI Investment Analysis

Denman NSW Investment Brief

CAUTION5.0% gross yield on a $600,389 (pending peer validation) median.

THE MARKET

Denman has compounded at 5.9%/yr over 5 years. Median sits in the $600,389 (pending peer validation) band today. Properties are sitting on market for 39 days (roughly balanced conditions).

  • Median house: $600,389 (pending peer validation) | Units: $197,598
  • Gross yield: 5.0% | Net yield: 3.5%
  • 5yr price CAGR: 5.9%/yr | 3yr forecast: 13.5%/yr
  • Population: 1,821 | Owner-occupier rate: 69% | Affluence: Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $580/wk | Days on market: 39 (stable)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

  • Median nightly rate: $659/night | Occupancy: 40%
  • Estimated annual STR gross: ~$96,205/yr
  • vs long-term rent: $30,160/yr (+219% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Muswellbrook station 23.3km away

BULL CASE

If Denman maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $690,447 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Denman pull back 10-15% from $600,389, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

  • Distance from CBD may limit long-term capital growth potential

COMPARABLE MARKETS

  • Kinchela (NSW): $776,000 median, 3.2% yield, -0.5% 1yr growth
  • Hat Head (NSW): $678,789 median, 3.6% yield, 37.5% 1yr growth
  • Aldavilla (NSW): $591,435 median, 4.2% yield, 3.4% 1yr growth

THE PLAY

Denman carries elevated risk that outweighs potential returns at current levels. A stable market combined with moderate vacancy risk warrants caution. Avoid new acquisitions unless significant discount to median pricing is achievable. Re-evaluate if vacancy falls below 2.5% or annual price growth exceeds 3%.

  • Entry range: $540,350$660,428
  • Minimum gross yield to target: 5.3%
  • Watch signal: vacancy dropping 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 signals4.0/10
Low socioeconomic base — classic gentrification precondition
Moderate capital growth (5.9% CAGR)
Active development pipeline (243 approvals) — supply attracting new residents

Growth Forecast

medium confidence
1yr Forecast
5.2%
p.a.
2yr Forecast
4.8%
p.a.
5yr Forecast
4.1%
p.a.

Basis: 5yr CAGR 5.9%

Headwinds
  • High supply pipeline (243 new approvals) — may cap price growth

Suburb Metric Thresholds

3 green10 yellow3 red
Rental Vacancy Rate
3 high impact
Days on Market
39 high impact
Weekly Rent (house)
580 medium impact
5yr Price CAGR
5.92 high impact
10yr Price CAGR
0 high impact
1yr Price Growth
11.8 medium impact
Population Growth
0.52 high impact
Median Household Income
1473 medium impact
Unemployment Rate
2.9 medium impact
Public Transport Score
3.8 medium impact
School Zone Quality
5.5 medium impact
Distance to CBD
172.28 medium impact
SEIFA Advantage/Disadvantage
4 medium impact
Owner Occupier Rate
69.2 medium impact
Gross Rental Yield (%)
5.02 high impact
Net Rental Yield (%)
3.52 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

29

2020

39

2021

61

2022

63

2023

51

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2328

Most disadvantagedLeast disadvantaged

Decile 4 of 10 — Average

Population

2,506

Education (IEO)

2/10

Econ. Resources (IER)

6/10

10-Year Investment Projection

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

Pre-filled: $580/wk median rent for Denman. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Denman PS
PrimaryGovernment
4.9/10
Muswellbrook HS
SecondaryGovernment
3.6/10

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.