Earlwood NSW Property Investment

SUBURB INVESTMENT BRIEF — Earlwood, NSW 2206 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 62/100 — Hold

Earlwood rates as "Hold" due to weak growth indicators, tight rental market (0.3% vacancy).

Earlwood sits in a correction phase of the property cycle with an overall investment score of 62 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the NSW market.

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MARKET POSITION

Median house price: $2,100,000 Median unit price: $719,137 Median weekly rent: $950/week Days on market: 54 days (worsening)

Earlwood commands a premium position in the NSW property landscape. Properties are spending an average of 54 days on market, pointing to softer demand conditions.

Comparable suburbs: - Zetland (NSW): Median $2,610,153, yield 2.0%, 1yr growth 8.7% - Newtown (NSW): Median $2,000,000, yield 2.4%, 1yr growth 6.8% - Glebe (NSW): Median $2,700,000, yield 1.8%, 1yr growth 3.3%

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RENTAL MARKET

Gross rental yield: 2.4% Net rental yield: 0.8% Vacancy rate: 0.3% (worsening) Rental demand: Very High

The rental market in Earlwood is characterised by very high demand with a vacancy rate of 0.3%, which is well below the national average of approximately 2.5%. Vacancy is trending worsening, warranting careful monitoring.

Short-term rental data indicates a median nightly rate of $195 with an estimated occupancy of 68%. This translates to an estimated annual STR revenue of $48,399 before expenses. Long-term rental at $49,400/year may offer comparable or better risk-adjusted returns given lower management overhead.

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GROWTH OUTLOOK

Population growth (5yr): 0.9% Price CAGR (5yr): -0.3% Capital growth (3yr forecast): -0.4% Supply pipeline: Moderate

Development activity consistent with long-term averages

Infrastructure & transport: - No major infrastructure projects identified. Transport: Standard suburban transport access

If Earlwood maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $2,415,000 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (0.9% growth, 0.3% vacancy, 2.4% yield), Earlwood offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Correction Vacancy risk: Low

Key risks: - Negative price growth suggests a softening market - Premium price point limits buyer pool and increases interest rate sensitivity

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $11,177/month - At 8%: $12,327/month - At 9%: $13,518/month

A market correction or interest rate shock could see prices in Earlwood pull back 10-15% from $2,100,000, with vacancy rising to 0.5% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Very High Safety score: 6.1/10 Walkability: 50/100 Owner-occupied: 36%

Schools: - Earlwood Public School (primary): Rating 10.0/10 - Earlwood East Public School (primary): Rating 9.5/10 - Earlwood West Public School (primary): Rating 9.0/10 - Earlwood High School (secondary): Rating 10.0/10

Earlwood is a highly sought-after residential area with good safety ratings and moderate walkability. The 36% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — HOLD

Earlwood offers balanced fundamentals but does not present an urgent buying signal. The market is in a correction phase with low vacancy risk.

Conditions: 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%.

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KEY ACTION ITEMS

1. Shortlist properties in the $1,890,000 - 2,310,000 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with Earlwood market expertise for off-market opportunities

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Disclaimer: This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.