Lilli Pilli NSW Property Investment

SUBURB INVESTMENT BRIEF — Lilli Pilli, NSW 2229 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 51/100 — Hold

Lilli Pilli rates as "Hold" due to weak growth indicators.

Lilli Pilli sits in a growth phase of the property cycle with an overall investment score of 51 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: $2,795,000 Median unit price: N/A Median weekly rent: $0/week Days on market: 30 days (stable)

Lilli Pilli commands a premium position in the NSW property landscape. Properties are spending an average of 30 days on market, suggesting balanced supply-demand dynamics.

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: 3.5% Net rental yield: 2.0% Vacancy rate: 3.0% (stable) Rental demand: Moderate

The rental market in Lilli Pilli is characterised by moderate demand with a vacancy rate of 3.0%, which is above the national average of approximately 2.5%. Vacancy is trending stable, maintaining steady conditions.

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.

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GROWTH OUTLOOK

Population growth (5yr): 1.5% Price CAGR (5yr): 1.6% Capital growth (3yr forecast): 1.8% Supply pipeline: Moderate

Development activity consistent with long-term averages

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

If Lilli Pilli maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $3,214,250 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (1.5% growth, 3.0% vacancy, 3.5% yield), Lilli Pilli offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Growth Vacancy risk: Moderate

Key risks: - 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%: $14,876/month - At 8%: $16,407/month - At 9%: $17,991/month

A market correction or interest rate shock could see prices in Lilli Pilli pull back 10-15% from $2,795,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Very High Safety score: 7.0/10 Walkability: 50/100 Owner-occupied: 50%

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

Lilli Pilli is a highly sought-after residential area with good safety ratings and moderate walkability. The 50% owner-occupier rate suggests a healthy mix of owners and renters.

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RECOMMENDATION — HOLD

Lilli Pilli offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with moderate 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 $2,515,500 - 3,074,500 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 Lilli Pilli 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.