Burwood Short-Term Rental (Airbnb) Market
Burwood NSW Investment Analysis
HOLD
— 1.4% gross yield on a $3,100,000 median.
THE MARKET
Median house price in Burwood sits at $3,100,000 with 39 days on market and a 2.7% vacancy rate. This is a balanced market right now.
- **Median house:** $3,100,000 | **Units:** $679,706 - **Gross yield:** 1.4% | **Net yield:** -0.1% - **5yr price CAGR:** -4.1%/yr | **3yr forecast:** -4.6%/yr - **Population:** 27,410 | **Owner-occupier rate:** 36% | **Affluence:** High
- **Supply pipeline:** Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- **Vacancy:** 2.7% (worsening) | **Rental demand:** Moderate - **Median weekly rent:** $810/wk | **Days on market:** 39 (stable) - Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- **Median nightly rate:** $195/night | **Occupancy:** 68% - **Estimated annual STR gross:** ~$48,399/yr - **vs long-term rent:** $42,120/yr (+15% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Burwood maintains 3%+ annual growth and vacancy stays below 1.9%, median prices could reach $3,565,000 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Burwood pull back 10-15% from $3,100,000, with vacancy rising to 4.9% and rental yields softening as tenants gain leverage.
KEY RISKS
- Negative price growth suggests a softening market - Premium price point limits buyer pool and increases interest rate sensitivity
COMPARABLE MARKETS
- **Zetland** (NSW): $2,610,153 median, 2.0% yield, 8.7% 1yr growth - **Glebe** (NSW): $2,700,000 median, 1.8% yield, 3.3% 1yr growth - **Watsons Bay** (NSW): $2,733,804 median, 3.1% yield, 14.7% 1yr growth
THE PLAY
Burwood offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough 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 4.0%.
- Entry range: $2,790,000 – $3,410,000 - 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.
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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.