Kangaroo Valley NSW Property Investment

Shellharbour · 2577 · Score: 57/100 · Hold

Median House Price
$1.99M
Rental Yield
1.8%
Vacancy Rate
2.8%
Median Weekly Rent
$678/wk
Median Unit Price
$700K
Population
856
Days on Market
110 days
Annual Growth
-4.0%

Kangaroo Valley Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$650/night
Occupancy Rate
40%
Est. Annual Revenue
$95K

Estimated revenue assumes year-round availability. Non-hosted short-stays are night-capped in some councils (e.g. 60 nights across most of Byron Shire, 180 in Ballina, Muswellbrook and parts of Greater Sydney) and levied in Victoria — the legal cap can cut achievable income well below this figure. Run STR Check for the rules on a specific address.

AI Investment Analysis

Kangaroo Valley NSW Investment Brief

HOLD — $1,985,537 (single source — OnTheHouse only, no peer to validate) median with 13.2%/yr growth over 5 years.

THE MARKET

Kangaroo Valley has compounded at 13.2%/yr over 5 years. Median sits in the $1,985,537 (single source — OnTheHouse only, no peer to validate) band today. Properties are sitting on market for 110 days (buyers have negotiating room).

  • Median house: $1,985,537 (single source — OnTheHouse only, no peer to validate) | Units: $699,798
  • Gross yield: 1.8% | Net yield: 0.3%
  • 5yr price CAGR: 13.2%/yr | 3yr forecast: 0.2%/yr
  • Population: 856 | Owner-occupier rate: 76% | Affluence: High
  • Supply pipeline: Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

  • Vacancy: 2.8% (stable) | Rental demand: Moderate
  • Median weekly rent: $678/wk | Days on market: 110 (worsening)
  • Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

  • Median nightly rate: $650/night | Occupancy: 40%
  • Estimated annual STR gross: ~$94,955/yr
  • vs long-term rent: $35,256/yr (+169% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Standard suburban transport access

BULL CASE

If Kangaroo Valley maintains 3%+ annual growth and vacancy stays below 2.0%, median prices could reach $2,283,368 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Kangaroo Valley pull back 10-15% from $1,985,537, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

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

COMPARABLE MARKETS

  • Barrack Point (NSW): $1,671,610 median, 2.6% yield, 1.8% 1yr growth
  • Gum Scrub (NSW): $2,013,000 median, 1.2% yield, 0.0% 1yr growth
  • Seal Rocks (NSW): $2,500,000 median, 1.0% yield, 6.3% 1yr growth

THE PLAY

Kangaroo Valley offers balanced fundamentals but does not present an urgent buying signal. The market is in a boom 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: $1,786,983 – $2,184,091
  • 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.

Gentrification Index

Early gentrification signals4.0/10
▼High SEIFA decile — already upgraded or established affluent area
▲Strong capital growth (13.2% CAGR) — above national average
▲Active development pipeline (3985 approvals) — supply attracting new residents

Growth Forecast

low confidence
1yr Forecast
10.2%
p.a.
2yr Forecast
9.4%
p.a.
5yr Forecast
8.2%
p.a.

Basis: 5yr CAGR 13.2% + 10yr CAGR 8.2%

Growth drivers
  • +Above-average population growth (1.6%/yr)
Headwinds
  • −Slow market (110 days avg) — buyer hesitancy
  • −High supply pipeline (3985 new approvals) — may cap price growth

Suburb Metric Thresholds

6 green4 yellow5 red
Rental Vacancy Rate
2.8 high impact
Days on Market
110 high impact
Weekly Rent (house)
678 medium impact
5yr Price CAGR
13.24 high impact
10yr Price CAGR
8.21 high impact
1yr Price Growth
-4 medium impact
Population Growth
1.64 high impact
Median Household Income
1667 medium impact
Unemployment Rate
3 medium impact
Public Transport Score
No data medium impact
School Zone Quality
7.4 medium impact
Distance to CBD
114.89 medium impact
SEIFA Advantage/Disadvantage
7 medium impact
Owner Occupier Rate
75.7 medium impact
Gross Rental Yield (%)
1.78 high impact
Net Rental Yield (%)
0.28 high impact

Macro Environment

Macro Indicators

Cash Rate

4.35%

▲ 0.25%

Cash rate as at 2026-05-06 · Credit data 2026-07

Suburb Supply & Demand

Suburb Supply Pipeline — New Dwelling Approvals

751

2020

910

2021

980

2022

691

2023

653

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2577

Most disadvantagedLeast disadvantaged

Decile 8 of 10 — Low disadvantage

Population

16,724

Education (IEO)

7/10

Econ. Resources (IER)

9/10

10-Year Investment Projection

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

Pre-filled: $678/wk median rent for Kangaroo Valley. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Kangaroo Valley PS
PrimaryGovernment
7.4/10
Bomaderry HS
SecondaryGovernment
5.1/10

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.