Swansea NSW Property Investment

Lake Macquarie · 2281 · Score: 54/100 · Hold

Median House Price
$1.09M
Rental Yield
3.2%
Vacancy Rate
3.0%
Median Weekly Rent
$665/wk
Median Unit Price
$824K
Population
5,044
Days on Market
68 days
Annual Growth
9.8%

Swansea Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$485/night
Occupancy Rate
40%
Est. Annual Revenue
$71K

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

Swansea NSW Investment Brief

## 1. Investment Verdict Hold – the key figure is the gross rental yield of 3.2%, which signals solid but not spectacular cash‑flow returns while price growth remains strong.

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## 2. Market Overview - Median house price: $1,093,702 - Median unit price: $823,716 - 1‑yr price growth: 9.8% - 5‑yr CAGR: 9.8% per year - 3‑yr growth forecast: 13.5%

Days on market is not supplied (listed as N), so we cannot quantify buyer‑seller speed. Signal: Double‑digit recent growth and a strong 3‑year forecast suggest sellers still have leverage, but the lack of DOM data means buyers should watch for any slowdown before committing.

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## 3. Rental Market - Median weekly rent: $665 - Gross rental yield: 3.2%

Vacancy rate and demand rating are not provided, so we cannot quantify rental tightness. Interpretation: A 3.2% yield places Swansea in the mid‑range of NSW suburbs – attractive for long‑term cash flow but not enough to offset a sharp dip in capital growth.

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## 4. Short‑Term Rental (STR) Opportunity No STR‑specific data (nightly rate, occupancy, annual revenue) are supplied. Conclusion: With only the long‑term rental yield available, LTR remains the clearer investment path until STR market data emerge.

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## 5. Infrastructure & Growth Drivers The data set does not list any known projects, transport upgrades, or major employment hubs. Implication: Without identified infrastructure catalysts, growth appears to be driven primarily by the suburb’s coastal lifestyle appeal and broader regional trends.

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## 6. Bull Case Assuming the 3‑year forecast of 13.5% materialises:

AssetCurrent Median+13.5% (3‑yr)Projected Median
House$1,093,702+$147,650≈ $1,241,352
Unit$823,716+$111,202≈ $934,918

If yields stay at 3.2% while rents rise proportionally, weekly rent could climb to roughly $755 (3.2% of $1,241,352 ÷ 52). This would lift gross yield to around 3.2%–3.3%, reinforcing the investment case.

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7. Risks

RiskDetail (with numbers where possible)
Vacancy riskNo vacancy data – a rise above the NSW average (~2.5%) could erode the 3.2% yield.
Single‑employer dependencyNo employment data – if the suburb relies heavily on a single industry, a downturn could impact rent and price growth.
Supply pipelineNo information on new dwellings – a sudden influx of units could push yields lower.
Rate sensitivityWith a median house price of $1.09 m, a 1% rise in interest rates adds roughly $11,000 to annual mortgage costs on a $500k loan, pressuring cash flow.

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8. The Play

ElementGuidance
Entry rangeHouses: $1.00 m – $1.10 m (around the median).<br>Units: $750 k – $850 k.
Minimum yield targetAim for ≥ 3.5% gross (requires rent above $665 wk or a purchase price below median).
Watch signals• Any published days‑on‑market figure.<br>• Vacancy rate moving above 3%.<br>• Interest‑rate hikes beyond 0.5% p.a.<br>• Confirmation of new housing supply or infrastructure projects.
Recommended strategyHold existing positions while monitoring the above signals. Consider adding only if price dips into the lower end of the entry range and rent can be secured at $700 wk or higher to lift yield above the 3.5% threshold.

*All figures are drawn exclusively from the supplied data; where data were missing, the analysis notes the gap rather than estimating.*

Gentrification Index

Early gentrification signals4.5/10
—Middle-tier SEIFA — moderate gentrification pressure
▲Above-average capital growth (9.8% CAGR)
▲Active development pipeline (6746 approvals) — supply attracting new residents
▲Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

low confidence
1yr Forecast
7.8%
p.a.
2yr Forecast
7.1%
p.a.
5yr Forecast
6.2%
p.a.

Basis: 5yr CAGR 9.8% + 10yr CAGR 7.9%

Headwinds
  • −Slow market (68 days avg) — buyer hesitancy
  • −High supply pipeline (6746 new approvals) — may cap price growth

Suburb Metric Thresholds

5 green7 yellow4 red
Rental Vacancy Rate
3 high impact
Days on Market
68 high impact
Weekly Rent (house)
665 medium impact
5yr Price CAGR
9.78 high impact
10yr Price CAGR
7.88 high impact
1yr Price Growth
9.8 medium impact
Population Growth
1.43 high impact
Median Household Income
1400 medium impact
Unemployment Rate
5 medium impact
Public Transport Score
6.4 medium impact
School Zone Quality
7 medium impact
Distance to CBD
95.68 medium impact
SEIFA Advantage/Disadvantage
5 medium impact
Owner Occupier Rate
75.2 medium impact
Gross Rental Yield (%)
3.16 high impact
Net Rental Yield (%)
1.66 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

1,253

2020

1,328

2021

1,498

2022

1,359

2023

1,308

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2281

Most disadvantagedLeast disadvantaged

Decile 5 of 10 — Average

Population

15,323

Education (IEO)

4/10

Econ. Resources (IER)

6/10

10-Year Investment Projection

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

Pre-filled: $665/wk median rent for Swansea. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Swansea PS
PrimaryGovernment
4.4/10
Swansea HS
SecondaryGovernment
5.5/10

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.