Kilaben Bay NSW Property Investment

Lake Macquarie · 2283 · Score: 53/100 · Hold

Median House Price
$1.15M
Rental Yield
2.8%
Vacancy Rate
2.7%
Median Weekly Rent
$620/wk
Median Unit Price
$845K
Population
1,516
Days on Market
49 days
Annual Growth
6.1%

Kilaben Bay Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$570.25/night
Occupancy Rate
40%
Est. Annual Revenue
$83K
AI Investment Analysis

Kilaben Bay NSW Investment Brief

HOLD2.8% gross yield on a $1,150,945 (single source — OnTheHouse only, no peer to validate) median.

THE MARKET

Kilaben Bay has compounded at 6.0%/yr over 5 years. Median sits in the $1,150,945 (single source — OnTheHouse only, no peer to validate) band today. Properties are sitting on market for 49 days (roughly balanced conditions).

  • Median house: $1,150,945 (single source — OnTheHouse only, no peer to validate) | Units: $844,520
  • Gross yield: 2.8% | Net yield: 1.3%
  • 5yr price CAGR: 6.0%/yr | 3yr forecast: 13.5%/yr
  • Population: 1,516 | Owner-occupier rate: 74% | Affluence: Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 2.7% (stable) | Rental demand: Moderate
  • Median weekly rent: $620/wk | Days on market: 49 (worsening)
  • Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

  • Median nightly rate: $570/night | Occupancy: 40%
  • Estimated annual STR gross: ~$83,257/yr
  • vs long-term rent: $32,240/yr (+158% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • Newcastle Inner City Bypass (Under Construction)
  • Hunter Valley Coal Chain Capacity Expansion (Under Procurement)
  • Transport: Fassifern station 4.6km away

BULL CASE

If Kilaben Bay maintains 3%+ annual growth and vacancy stays below 1.9%, median prices could reach $1,323,587 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Kilaben Bay pull back 10-15% from $1,150,945, with vacancy rising to 4.9% and rental yields softening as tenants gain leverage.

KEY RISKS

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

COMPARABLE MARKETS

  • Lake Illawarra (NSW): $982,570 median, 3.4% yield, 10.6% 1yr growth
  • Turners Flat (NSW): $819,000 median, 3.0% yield, 21.3% 1yr growth
  • Canley Vale (NSW): $1,345,042 median, 2.7% yield, 30.0% 1yr growth

THE PLAY

Kilaben Bay offers balanced fundamentals but does not present an urgent buying signal. The market is in a above_trend phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

  • Entry range: $1,035,850$1,266,040
  • Minimum gross yield to target: 4.5%
  • 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 (6.0% CAGR)
Active development pipeline (6746 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
5.0%
p.a.
2yr Forecast
4.6%
p.a.
5yr Forecast
4.0%
p.a.

Basis: 5yr CAGR 6.0% + 10yr CAGR 5.4%

Headwinds
  • High supply pipeline (6746 new approvals) — may cap price growth

Suburb Metric Thresholds

3 green9 yellow4 red
Rental Vacancy Rate
2.7 high impact
Days on Market
49 high impact
Weekly Rent (house)
620 medium impact
5yr Price CAGR
5.97 high impact
10yr Price CAGR
5.4 high impact
1yr Price Growth
6.1 medium impact
Population Growth
0.94 high impact
Median Household Income
1441 medium impact
Unemployment Rate
5.6 medium impact
Public Transport Score
4 medium impact
School Zone Quality
7 medium impact
Distance to CBD
100.23 medium impact
SEIFA Advantage/Disadvantage
4 medium impact
Owner Occupier Rate
73.8 medium impact
Gross Rental Yield (%)
2.8 high impact
Net Rental Yield (%)
1.3 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

1,253

2020

1,328

2021

1,498

2022

1,359

2023

1,308

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2283

Most disadvantagedLeast disadvantaged

Decile 4 of 10 — Average

Population

24,419

Education (IEO)

4/10

Econ. Resources (IER)

5/10

10-Year Investment Projection

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

Pre-filled: $620/wk median rent for Kilaben Bay. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Coal Pt PS
PrimaryGovernment
7/10
Toronto HS
SecondaryGovernment
5.3/10

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.