Raymond Terrace NSW Property Investment

SUBURB INVESTMENT BRIEF — Raymond Terrace, NSW 2324 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 69/100 — Buy

Raymond Terrace rates as "Buy" due to strong growth fundamentals.

Raymond Terrace sits in a growth phase of the property cycle with an overall investment score of 69 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: $720,000 Median unit price: $359,409 Median weekly rent: $595/week Days on market: 23 days (improving)

Raymond Terrace sits within the mid-market segment in the NSW property landscape. Properties are spending an average of 23 days on market, indicating strong buyer competition.

Comparable suburbs: - Muswellbrook (NSW): Median $580,000, yield 5.0%, 1yr growth 11.5% - Merimbula (NSW): Median $900,000, yield 4.0%, 1yr growth 1.0% - Ashby (NSW): Median $850,000, yield 0.0%, 1yr growth 0.0%

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RENTAL MARKET

Gross rental yield: 4.3% Net rental yield: 2.8% Vacancy rate: 2.4% (improving) Rental demand: High

The rental market in Raymond Terrace is characterised by high demand with a vacancy rate of 2.4%, which is near the national average of approximately 2.5%. Vacancy is trending improving, supporting landlord pricing power.

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. This represents a 56% premium over estimated long-term rental income of $30,940/year, though STR comes with higher management costs and regulatory risk.

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GROWTH OUTLOOK

Population growth (5yr): 0.7% Price CAGR (5yr): 10.0% Capital growth (3yr forecast): 11.2% Supply pipeline: Low

Price growth outpacing new supply, limited development pipeline

Infrastructure & transport: - M1 Pacific Motorway Extension to Raymond Terrace (under construction) - Heatherbrae Bypass (M1 Northern Section) (under construction) - Raymond Terrace Road and Government Road Intersection Upgrade (completed) Transport: Well-connected inner-city location

If Raymond Terrace maintains 3%+ annual growth and vacancy stays below 1.7%, median prices could reach $828,000 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (0.7% growth, 2.4% vacancy, 4.3% yield), Raymond Terrace 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: - No significant risk factors identified for this suburb

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $3,832/month - At 8%: $4,226/month - At 9%: $4,635/month

A market correction or interest rate shock could see prices in Raymond Terrace pull back 10-15% from $720,000, with vacancy rising to 4.3% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Below Average Safety score: 7.6/10 Walkability: 90/100 Owner-occupied: 28%

Schools: - Raymond Terrace Public School (primary): Rating 10.0/10 - Raymond Terrace East Public School (primary): Rating 9.5/10 - Raymond Terrace High School (secondary): Rating 10.0/10

Raymond Terrace provides affordable living with good safety ratings and strong walkability. The 28% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — BUY

Raymond Terrace presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels.

Conditions: Proceed with due diligence on specific properties. Target gross yields above 4.3% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

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KEY ACTION ITEMS

1. Shortlist properties in the $648,000 - 792,000 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 Raymond Terrace 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.