South West Rocks NSW Property Investment

Kempsey · 2431 · Score: 52/100 · Hold

Median House Price
$782K
Rental Yield
3.8%
Vacancy Rate
3.0%
Median Weekly Rent
$565/wk
Median Unit Price
$621K
Population
5,058
Days on Market
135 days
Annual Growth
-2.9%

South West Rocks Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$238/night
Occupancy Rate
%
Est. Annual Revenue
$56K

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

South West Rocks NSW Investment Brief

HOLD — 3.8% gross yield on a $782,023 median.

THE MARKET

South West Rocks has compounded at 3.5%/yr over 5 years — a house that cost $658,442 in 2021 is worth $782,023 today. Properties are sitting on market for 135 days (buyers have negotiating room). At the same growth rate, today's median reaches $928,798 by 2031.

  • Median house: $782,023 | Units: $621,320
  • Gross yield: 3.8% | Net yield: 2.3%
  • 5yr price CAGR: 3.5%/yr | 3yr forecast: 13.5%/yr
  • Population: 5,058 | Owner-occupier rate: 74% | Affluence: Below Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $565/wk | Days on market: 135 (worsening)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.

INFRASTRUCTURE & CATALYSTS

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

BULL CASE

If South West Rocks maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $899,326 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in South West Rocks pull back 10-15% from $782,023, 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

  • Berkeley (NSW): $807,810 median, 4.2% yield, 1.3% 1yr growth
  • Lake Heights (NSW): $902,286 median, 4.0% yield, 6.5% 1yr growth
  • Lake Illawarra (NSW): $967,845 median, 3.5% yield, 10.6% 1yr growth

THE PLAY

South West Rocks offers balanced fundamentals but does not present an urgent buying signal. The market is in a recovery 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 4.3%.

  • Entry range: $703,821 – $860,225
  • 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

Pre-gentrification3.5/10
▲Low socioeconomic base — classic gentrification precondition
▲Active development pipeline (685 approvals) — supply attracting new residents

Growth Forecast

low confidence
1yr Forecast
3.1%
p.a.
2yr Forecast
2.9%
p.a.
5yr Forecast
2.5%
p.a.

Basis: 5yr CAGR 3.5% + 10yr CAGR 5.1%

Growth drivers
  • +Above-average population growth (1.9%/yr)
Headwinds
  • −Slow market (135 days avg) — buyer hesitancy
  • −High supply pipeline (685 new approvals) — may cap price growth

Suburb Metric Thresholds

2 green4 yellow10 red
Rental Vacancy Rate
3 high impact
Days on Market
135 high impact
Weekly Rent (house)
565 medium impact
5yr Price CAGR
3.46 high impact
10yr Price CAGR
5.09 high impact
1yr Price Growth
-2.9 medium impact
Population Growth
1.86 high impact
Median Household Income
997 medium impact
Unemployment Rate
6.2 medium impact
Public Transport Score
1.3 medium impact
School Zone Quality
5.2 medium impact
Distance to CBD
373.75 medium impact
SEIFA Advantage/Disadvantage
2 medium impact
Owner Occupier Rate
74.5 medium impact
Gross Rental Yield (%)
3.76 high impact
Net Rental Yield (%)
2.26 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

93

2020

122

2021

174

2022

161

2023

135

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2431

Most disadvantagedLeast disadvantaged

Decile 3 of 10 — High disadvantage

Population

5,628

Education (IEO)

2/10

Econ. Resources (IER)

3/10

10-Year Investment Projection

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

Pre-filled: $565/wk median rent for South West Rocks. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Sth West Rocks PS
PrimaryGovernment
5.2/10
Melville HS
SecondaryGovernment
3.3/10

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.