McMahons Point NSW Property Investment

Mcmahons Point has compounded at 5.8%/yr over 5 years — a house that cost $2,846,501 in 2021 is worth $3,773,460 today. Properties are sitting on market for 28 days (sellers have the leverage). At the same growth rate, today's median reaches $5,002,281 by 2031.

• Median house: $3,773,460 | Units: $1,468,871
• Gross yield: 1.6% | Net yield: 0.1%
• 5yr price CAGR: 5.8%/yr | 3yr forecast: 5.9%/yr
• Population: 2,315 | Owner-occupier rate: 41% | Affluence: Very High

• Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

• Vacancy: 1.6% (improving) | Rental demand: High
• Median weekly rent: $1,125/wk | Days on market: 28 (stable)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $643/night | Occupancy: 40%
• Estimated annual STR gross: ~$93,896/yr
• vs long-term rent: $58,500/yr (+61% STR premium — factor in higher management costs)

• New Intercity Fleet (NSW Trains) (Under Delivery)
• Sydney Metro City & Southwest (Operational)
• Sydney Gateway (Under Construction)
• Beaches Link Tunnel (Sydney) (Announced)
• Transport: North Sydney station 0.5km away

If Mcmahons Point maintains 3%+ annual growth and vacancy stays below 1.1%, median prices could reach $4,339,479 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Mcmahons Point pull back 10-15% from $3,773,460, with vacancy rising to 2.9% and rental yields softening as tenants gain leverage.

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

• Bondi (NSW): $4,422,566 median, 2.4% yield, 7.1% 1yr growth
• Crows Nest (NSW): $2,824,468 median, 2.3% yield, 10.9% 1yr growth
• Woolloomooloo (NSW): $2,747,216 median, 2.0% yield, -8.2% 1yr growth

Mcmahons Point 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 1.6% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.

• Entry range: $3,396,114 – $4,150,806
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy staying below 2% and days on market holding under 35

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