Tea Gardens NSW Property Investment

CAUTION — 3.2% gross yield on a $840,000–$992,499 (sources disagree, range shown — do NOT quote a single number) median.

Median house price in Tea Gardens sits at $840,000–$992,499 (sources disagree, range shown — do NOT quote a single number) with 41 days on market and a 3.0% vacancy rate. This is a tenant-favourable market right now.

• Median house: $840,000–$992,499 (sources disagree, range shown — do NOT quote a single number) | Units: $638,143
• Gross yield: 3.2% | Net yield: 1.7%
• 5yr price CAGR: -12.9%/yr | 3yr forecast: 13.5%/yr
• Population: 3,288 | Owner-occupier rate: 66% | Affluence: Below Average

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

• Vacancy: 3.0% (stable) | Rental demand: Moderate
• Median weekly rent: $600/wk | Days on market: 41 (stable)
• Tenant market — vacancy elevated, negotiate hard on rent.

• Median nightly rate: $537/night | Occupancy: 40%
• Estimated annual STR gross: ~$78,347/yr
• vs long-term rent: $31,200/yr (+151% STR premium — factor in higher management costs)

• No major confirmed infrastructure projects on record.
• Transport: Wirragulla station 44.2km away

If Tea Gardens maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $1,119,936 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Tea Gardens pull back 10-15% from $973,857, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

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

• 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

Tea Gardens carries elevated risk that outweighs potential returns at current levels. A recovery 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: $876,471 – $1,071,243
• 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.