Oberon NSW Property Investment

Blue Mountains · 2787 · Score: 52/100 · Hold

Median House Price
$542K
Rental Yield
4.5%
Vacancy Rate
3.0%
Median Weekly Rent
$473/wk
Median Unit Price
$460K
Population
3,319
Days on Market
41 days
Annual Growth
-0.5%

Oberon Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$522.06/night
Occupancy Rate
40%
Est. Annual Revenue
$76K
AI Investment Analysis

Oberon NSW Investment Brief

HOLD4.5% gross yield on a $541,506 (pending peer validation) median.

THE MARKET

Oberon has compounded at 7.0%/yr over 5 years. Median sits in the $541,506 (pending peer validation) band today. Properties are sitting on market for 41 days (roughly balanced conditions).

  • Median house: $541,506 (pending peer validation) | Units: $459,588
  • Gross yield: 4.5% | Net yield: 3.0%
  • 5yr price CAGR: 7.0%/yr | 3yr forecast: 13.5%/yr
  • Population: 3,319 | Owner-occupier rate: 73% | Affluence: Below Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $473/wk | Days on market: 41 (stable)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

  • Median nightly rate: $522/night | Occupancy: 40%
  • Estimated annual STR gross: ~$76,221/yr
  • vs long-term rent: $24,596/yr (+210% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Standard suburban transport access

BULL CASE

If Oberon maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $622,732 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Oberon pull back 10-15% from $541,506, 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

  • Kunama (NSW): $457,500 median, 3.9% yield, 0.0% 1yr growth
  • Kandos (NSW): $422,413 median, 4.6% yield, 7.1% 1yr growth
  • Lavington (NSW): $606,749 median, 4.5% yield, 21.1% 1yr growth

THE PLAY

Oberon offers balanced fundamentals but does not present an urgent buying signal. The market is in a boom 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 5.0%.

  • Entry range: $487,355$595,657
  • Minimum gross yield to target: 4.8%
  • 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 (7.0% CAGR)
Active development pipeline (790 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
5.5%
p.a.
2yr Forecast
5.0%
p.a.
5yr Forecast
4.4%
p.a.

Basis: 5yr CAGR 7.0% + 10yr CAGR 5.0%

Headwinds
  • High supply pipeline (790 new approvals) — may cap price growth

Suburb Metric Thresholds

3 green7 yellow6 red
Rental Vacancy Rate
3 high impact
Days on Market
41 high impact
Weekly Rent (house)
473 medium impact
5yr Price CAGR
6.99 high impact
10yr Price CAGR
5.04 high impact
1yr Price Growth
-0.5 medium impact
Population Growth
0.7 high impact
Median Household Income
1380 medium impact
Unemployment Rate
3.8 medium impact
Public Transport Score
0 medium impact
School Zone Quality
4.8 medium impact
Distance to CBD
125.22 medium impact
SEIFA Advantage/Disadvantage
3 medium impact
Owner Occupier Rate
72.9 medium impact
Gross Rental Yield (%)
4.54 high impact
Net Rental Yield (%)
3.04 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

147

2020

217

2021

164

2022

147

2023

115

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2787

Most disadvantagedLeast disadvantaged

Decile 3 of 10 — High disadvantage

Population

4,605

Education (IEO)

3/10

Econ. Resources (IER)

5/10

10-Year Investment Projection

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

Pre-filled: $473/wk median rent for Oberon. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Oberon PS
PrimaryGovernment
4.9/10
Oberon HS
SecondaryGovernment
4.7/10

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.