McMahons Point NSW Property Investment

THE MARKET

Median house price in Mcmahons Point sits at $2,290,462 with 65 days on market and a 1.1% vacancy rate. This is a tight rental market right now.

- **Median house:** $2,290,462 | **Units:** $1,068,380 - **Gross yield:** 2.2% | **Net yield:** 0.8% - **5yr price CAGR:** -0.7%/yr | **3yr forecast:** -0.8%/yr - **Population:** 19,777 | **Owner-occupier rate:** 34% | **Affluence:** Very High

- **Supply pipeline:** Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

- **Vacancy:** 1.1% (worsening) | **Rental demand:** Very High - **Median weekly rent:** $990/wk | **Days on market:** 65 (worsening) - Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

- **Median nightly rate:** $195/night | **Occupancy:** 68% - **Estimated annual STR gross:** ~$48,399/yr - **vs long-term rent:** $51,480/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If Mcmahons Point maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $2,634,031 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Mcmahons Point pull back 10-15% from $2,290,462, with vacancy rising to 2.0% 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 - **Newtown** (NSW): $2,000,000 median, 2.4% yield, 6.8% 1yr growth - **Glebe** (NSW): $2,700,000 median, 1.8% yield, 3.3% 1yr growth

THE PLAY

Mcmahons Point offers balanced fundamentals but does not present an urgent buying signal. The market is in a correction phase with low 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: $2,061,416 – $2,519,508 - 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.