The Entrance NSW Property Investment

THE MARKET

Median house price in The Entrance sits at $950,000 with 35 days on market and a 1.3% vacancy rate. This is a tight rental market right now.

- **Median house:** $950,000 | **Units:** $419,535 - **Gross yield:** 3.3% | **Net yield:** 1.8% - **5yr price CAGR:** -4.0%/yr | **3yr forecast:** -4.5%/yr - **Population:** 22,217 | **Owner-occupier rate:** 33% | **Affluence:** Above Average

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

RENTAL SNAPSHOT

- **Vacancy:** 1.3% (worsening) | **Rental demand:** Very High - **Median weekly rent:** $600/wk | **Days on market:** 35 (stable) - 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:** $31,200/yr (+55% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

- **The Entrance Revitalisation Project** (under construction) - **The Entrance Dredging Program** (under construction) - **Temporary Coastal Protection Works at The Entrance North** (under construction) - **Transport:** Well-connected inner-city location

BULL CASE

If The Entrance maintains 3%+ annual growth and vacancy stays below 0.9%, median prices could reach $1,092,500 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in The Entrance pull back 10-15% from $950,000, with vacancy rising to 2.3% and rental yields softening as tenants gain leverage.

KEY RISKS

- Negative price growth suggests a softening market

COMPARABLE MARKETS

- **Marsden Park** (NSW): $1,200,000 median, 3.5% yield, 5.8% 1yr growth - **Mittagong** (NSW): $1,100,000 median, 3.2% yield, 12.9% 1yr growth - **Leppington** (NSW): $1,000,000 median, 4.2% yield, -5.5% 1yr growth

THE PLAY

The Entrance offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough 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: $855,000 – $1,045,000 - 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.