Woollahra NSW Property Investment
Woollahra · 2025 · Score: 72/100 · Buy
Woollahra Short-Term Rental (Airbnb) Market
Woollahra NSW Investment Brief
BUY — 2.0% gross yield on a $4,880,778 median.
THE MARKET
Woollahra has compounded at 5.8%/yr over 5 years — a house that cost $3,681,804 in 2021 is worth $4,880,778 today. Properties are sitting on market for 66 days (buyers have negotiating room). At the same growth rate, today's median reaches $6,470,195 by 2031.
- Median house: $4,880,778 | Units: $1,523,114
- Gross yield: 2.0% | Net yield: 0.5%
- 5yr price CAGR: 5.8%/yr | 3yr forecast: 13.5%/yr
- Population: 7,189 | Owner-occupier rate: 60% | Affluence: Very High
- Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- Vacancy: 1.3% (improving) | Rental demand: Very High
- Median weekly rent: $1,875/wk | Days on market: 66 (worsening)
- Landlord market — rents likely to keep rising.
SHORT-TERM RENTAL
- Median nightly rate: $778/night | Occupancy: 40%
- Estimated annual STR gross: ~$113,579/yr
- vs long-term rent: $97,500/yr (+16% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- New Intercity Fleet (NSW Trains) (Under Delivery)
- Sydney Gateway (Under Construction)
- Sydney Metro City & Southwest (Operational)
- Sydney Metro West (Under Construction)
- Transport: Well-connected inner-city location
BULL CASE
If Woollahra maintains 3%+ annual growth and vacancy stays below 0.9%, median prices could reach $5,612,895 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Woollahra pull back 10-15% from $4,880,778, with vacancy rising to 2.3% and rental yields softening as tenants gain leverage.
KEY RISKS
- Premium price point limits buyer pool and increases interest rate sensitivity
COMPARABLE MARKETS
- Bondi (NSW): $4,422,566 median, 2.4% yield, 7.1% 1yr growth
- Strathfield (NSW): $3,912,396 median, 1.7% yield, -3.0% 1yr growth
- Curl Curl (NSW): $3,736,430 median, 3.3% yield, 0.1% 1yr growth
THE PLAY
Woollahra presents a compelling investment opportunity. The combination of solid fundamentals and very high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.0% and prioritise properties with value-add potential. Consider timing entry around the current cooling phase of the market cycle.
- Entry range: $4,392,700 – $5,368,856
- 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
Growth Forecast
low confidenceBasis: 5yr CAGR 5.8% + 10yr CAGR 7.5%
- +Very tight rental market (vacancy 1.3%) — upward price pressure
- +Premium transport infrastructure — supports long-term capital growth
- −Population decline (-0.6%/yr) — demand headwind
- −Slow market (66 days avg) — buyer hesitancy
- −High supply pipeline (666 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
109
2020
90
2021
146
2022
208
2023
113
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 2025
Decile 10 of 10 — Low disadvantage
Population
7,189
Education (IEO)
10/10
Econ. Resources (IER)
8/10
10-Year Investment Projection
Modelled on Woollahra NSW data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $1875/wk median rent for Woollahra. 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.
Analyse a Property in Woollahra
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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.