Narara NSW Property Investment
Hawkesbury · 2250 · Score: 60/100 · Hold
Narara Short-Term Rental (Airbnb) Market
Narara NSW Investment Brief
HOLD — $1,018,804 median with 8.0%/yr growth over 5 years.
THE MARKET
Narara has compounded at 8.0%/yr over 5 years — a house that cost $693,381 in 2021 is worth $1,018,804 today. Properties are sitting on market for 61 days (buyers have negotiating room). At the same growth rate, today's median reaches $1,496,957 by 2031.
- Median house: $1,018,804 | Units: $743,244
- Gross yield: 3.6% | Net yield: 2.1%
- 5yr price CAGR: 8.0%/yr | 3yr forecast: 13.5%/yr
- Population: 8,471 | Owner-occupier rate: 65% | Affluence: High
- Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- Vacancy: 2.2% (improving) | Rental demand: High
- Median weekly rent: $700/wk | Days on market: 61 (worsening)
- Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- Median nightly rate: $418/night | Occupancy: 40%
- Estimated annual STR gross: ~$61,101/yr
- vs long-term rent: $36,400/yr (+68% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record.
- Transport: Standard suburban transport access
BULL CASE
If Narara maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $1,171,625 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Narara pull back 10-15% from $1,018,804, with vacancy rising to 4.0% 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
- Kinchela (NSW): $776,000 median, 3.2% yield, -0.5% 1yr growth
- Collombatti (NSW): $800,481 median, 3.1% yield, 11.9% 1yr growth
THE PLAY
Narara 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 4.1%.
- Entry range: $916,924 – $1,120,684
- 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
Growth Forecast
low confidenceBasis: 5yr CAGR 7.2% + 10yr CAGR 8.3%
- +Low rental vacancy (2.2%) — constrained supply
- −Slow market (61 days avg) — buyer hesitancy
- −High supply pipeline (1493 new approvals) — may cap price growth
Suburb Metric Thresholds
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
257
2020
325
2021
221
2022
335
2023
355
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 2250
Decile 6 of 10 — Average
Population
71,168
Education (IEO)
7/10
Econ. Resources (IER)
6/10
10-Year Investment Projection
Modelled on Narara NSW data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $700/wk median rent for Narara. Capital growth and rent increase are editable assumptions.
Schools
In your catchment
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.
Nearby Suburbs
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.