Vaucluse NSW Property Investment

Waverley · 2030 · Score: 71/100 · Buy

Median House Price
$9.42M
Rental Yield
1.6%
Vacancy Rate
1.6%
Median Weekly Rent
$2975/wk
Median Unit Price
$1.51M
Population
9,510
Days on Market
77 days
Annual Growth
7.9%

Vaucluse Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$1022.81/night
Occupancy Rate
40%
Est. Annual Revenue
$149K
AI Investment Analysis

Vaucluse NSW Investment Brief

BUY1.6% gross yield on a $9,419,608 median.

THE MARKET

Vaucluse has compounded at 6.2%/yr over 5 years — a house that cost $6,972,849 in 2021 is worth $9,419,608 today. Properties are sitting on market for 77 days (buyers have negotiating room). At the same growth rate, today's median reaches $12,724,930 by 2031.

  • Median house: $9,419,608 | Units: $1,506,886
  • Gross yield: 1.6% | Net yield: 0.1%
  • 5yr price CAGR: 6.2%/yr | 3yr forecast: 13.5%/yr
  • Population: 9,510 | Owner-occupier rate: 73% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 1.6% (improving) | Rental demand: High
  • Median weekly rent: $2,975/wk | Days on market: 77 (worsening)
  • Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

  • Median nightly rate: $1,023/night | Occupancy: 40%
  • Estimated annual STR gross: ~$149,330/yr
  • vs long-term rent: $154,700/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

  • New Intercity Fleet (NSW Trains) (Under Delivery)
  • Sydney Gateway (Under Construction)
  • Sydney Metro City & Southwest (Operational)
  • Beaches Link Tunnel (Sydney) (Announced)
  • Transport: Edgecliff station 4.2km away

BULL CASE

If Vaucluse maintains 3%+ annual growth and vacancy stays below 1.1%, median prices could reach $10,832,549 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Vaucluse pull back 10-15% from $9,419,608, with vacancy rising to 2.9% and rental yields softening as tenants gain leverage.

KEY RISKS

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

COMPARABLE MARKETS

  • Rose Bay (NSW): $7,078,563 median, 1.8% yield, -19.4% 1yr growth
  • Bellevue Hill (NSW): $11,420,850 median, 1.4% yield, -27.8% 1yr growth
  • Dover Heights (NSW): $6,729,557 median, 2.4% yield, 61.0% 1yr growth

THE PLAY

Vaucluse 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 recovery phase of the market cycle.

  • Entry range: $8,477,647$10,361,569
  • Minimum gross yield to target: 4.5%
  • Watch signal: vacancy staying 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
High SEIFA decile — already upgraded or established affluent area
Moderate capital growth (6.2% CAGR)
Inner/middle ring location (5.9km to CBD) — high gentrification corridor
Active development pipeline (1122 approvals) — supply attracting new residents
Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

low confidence
1yr Forecast
8.3%
p.a.
2yr Forecast
7.7%
p.a.
5yr Forecast
6.7%
p.a.

Basis: 5yr CAGR 6.2% + 10yr CAGR 13.4%

Growth drivers
  • +Low rental vacancy (1.6%) — constrained supply
  • +Premium transport infrastructure — supports long-term capital growth
Headwinds
  • Slow market (77 days avg) — buyer hesitancy
  • High supply pipeline (1122 new approvals) — may cap price growth

Suburb Metric Thresholds

9 green4 yellow3 red
Rental Vacancy Rate
1.6 high impact
Days on Market
77 high impact
Weekly Rent (house)
2975 medium impact
5yr Price CAGR
6.22 high impact
10yr Price CAGR
13.41 high impact
1yr Price Growth
7.9 medium impact
Population Growth
0.5 high impact
Median Household Income
3481 medium impact
Unemployment Rate
3.7 medium impact
Public Transport Score
49 medium impact
School Zone Quality
7.4 medium impact
Distance to CBD
5.89 medium impact
SEIFA Advantage/Disadvantage
10 medium impact
Owner Occupier Rate
72.9 medium impact
Gross Rental Yield (%)
1.64 high impact
Net Rental Yield (%)
0.14 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

231

2020

208

2021

416

2022

115

2023

152

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2030

Most disadvantagedLeast disadvantaged

Decile 10 of 10 — Low disadvantage

Population

14,434

Education (IEO)

10/10

Econ. Resources (IER)

10/10

10-Year Investment Projection

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

Pre-filled: $2975/wk median rent for Vaucluse. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Vaucluse PS
PrimaryGovernment
8.6/10
Rose Bay SC
SecondaryGovernment
8.1/10

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.