Menai NSW Property Investment

Sutherland · 2234 · Score: 65/100 · Buy

Median House Price
$1.67M
Rental Yield
2.9%
Vacancy Rate
1.6%
Median Weekly Rent
$935/wk
Median Unit Price
$1.20M
Population
10,419
Days on Market
28 days
Annual Growth
0.6%

Menai Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$370/night
Occupancy Rate
40%
Est. Annual Revenue
$54K

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

Menai NSW Investment Brief

BUY — 2.9% gross yield on a $1,670,474 median.

THE MARKET

Menai has compounded at 5.6%/yr over 5 years — a house that cost $1,272,097 in 2021 is worth $1,670,474 today. Properties are sitting on market for 28 days (sellers have the leverage). At the same growth rate, today's median reaches $2,193,609 by 2031.

  • Median house: $1,670,474 | Units: $1,204,970
  • Gross yield: 2.9% | Net yield: 1.4%
  • 5yr price CAGR: 5.6%/yr | 3yr forecast: 13.5%/yr
  • Population: 10,419 | Owner-occupier rate: 89% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 1.6% (improving) | Rental demand: High
  • Median weekly rent: $935/wk | Days on market: 28 (stable)
  • Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

  • Median nightly rate: $370/night | Occupancy: 40%
  • Estimated annual STR gross: ~$54,048/yr
  • vs long-term rent: $48,620/yr (+11% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • Sutherland Hospital Redevelopment (planned)
  • Menai Marketplace Upgrade (completed)
  • ANSTO Lucas Heights Expansion (Nuclear Medicine) (under_construction)
  • Heathcote Road Upgrade (Menai Road to New Illawarra Road) (approved)
  • Transport: Standard suburban transport access

BULL CASE

If Menai maintains 3%+ annual growth and vacancy stays below 1.1%, median prices could reach $1,921,045 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Menai pull back 10-15% from $1,670,474, with vacancy rising to 2.9% and rental yields softening as tenants gain leverage.

KEY RISKS

  • No significant risk factors identified for this suburb

COMPARABLE MARKETS

  • Cabramatta West (NSW): $1,231,328 median, 2.9% yield, 7.8% 1yr growth
  • Guildford West (NSW): $1,243,404 median, 3.4% yield, 8.8% 1yr growth
  • Hammondville (NSW): $1,352,552 median, 2.9% yield, -11.8% 1yr growth

THE PLAY

Menai presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.9% and prioritise properties with value-add potential. Consider timing entry around the current cooling phase of the market cycle.

  • Entry range: $1,503,427 – $1,837,521
  • Minimum gross yield to target: 4.5%
  • Watch signal: vacancy staying below 2% and days on market holding under 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

Pre-gentrification3.0/10
▼High SEIFA decile — already upgraded or established affluent area
—Moderate capital growth (5.6% CAGR)
—Outer suburban location (24.4km to CBD) — slower gentrification cycle
▲Active development pipeline (5667 approvals) — supply attracting new residents
▲Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

high confidence
1yr Forecast
5.7%
p.a.
2yr Forecast
5.2%
p.a.
5yr Forecast
4.6%
p.a.

Basis: 5yr CAGR 5.6% + 10yr CAGR 6.5%

Growth drivers
  • +Low rental vacancy (1.6%) — constrained supply
  • +Active market (28 days avg)
Headwinds
  • −High supply pipeline (5667 new approvals) — may cap price growth

Suburb Metric Thresholds

7 green5 yellow4 red
Rental Vacancy Rate
1.6 high impact
Days on Market
28 high impact
Weekly Rent (house)
935 medium impact
5yr Price CAGR
5.61 high impact
10yr Price CAGR
6.46 high impact
1yr Price Growth
0.6 medium impact
Population Growth
0.04 high impact
Median Household Income
2743 medium impact
Unemployment Rate
3 medium impact
Public Transport Score
6.2 medium impact
School Zone Quality
6.1 medium impact
Distance to CBD
24.38 medium impact
SEIFA Advantage/Disadvantage
9 medium impact
Owner Occupier Rate
89 medium impact
Gross Rental Yield (%)
2.91 high impact
Net Rental Yield (%)
1.41 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

1,113

2020

1,488

2021

1,323

2022

998

2023

745

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2234

Most disadvantagedLeast disadvantaged

Decile 10 of 10 — Low disadvantage

Population

30,648

Education (IEO)

9/10

Econ. Resources (IER)

10/10

10-Year Investment Projection

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

Pre-filled: $935/wk median rent for Menai. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Menai PS
PrimaryGovernment
6.9/10
Menai HS
SecondaryGovernment
6.9/10

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.