Ulladulla NSW Property Investment

## 1. Investment Verdict We recommend a "Hold" strategy for Ulladulla, NSW, with the single most important number justifying this decision being the Investment Scorecard rating of 56.0/100. This score indicates a moderate investment potential, suggesting that while Ulladulla has some attractive features, it also has limitations that prevent it from being a top-tier investment opportunity.

## 2. Market Overview The median house price in Ulladulla is $1,009,524, while the median unit price is $755,493. Over the past year, house prices have grown by 3.0%, and the 5-year compound annual growth rate (CAGR) is 13.1%. The gross rental yield is 3.1%, which is relatively low compared to some other suburbs. The days on market are not available, but the vacancy rate is 3.0%, indicating a moderate balance between supply and demand. For buyers, this suggests that they may have some negotiating power, while sellers may need to be patient to find the right buyer.

## 3. Rental Market The rental market in Ulladulla is characterized by a moderate demand, with a vacancy rate of 3.0% and a median weekly rent of $595. The gross rental yield is 3.1%, which is lower than some other suburbs, such as Dharruk (3.2%) and Bidwill (3.0%). The demand rating is moderate, suggesting that investors may need to be competitive with their pricing to attract tenants. Overall, the rental market in Ulladulla is stable, but not particularly strong.

## 4. Short-Term Rental Opportunity The median nightly rate for short-term rentals in Ulladulla is $477, with an occupancy rate of 40%. This translates to an estimated annual revenue of around $87,000 (assuming 365 nights per year and 40% occupancy). Compared to the long-term rental market, short-term rentals may offer higher yields, but they also come with higher management costs and more uncertainty. In Ulladulla, the choice between long-term and short-term rentals depends on the investor's strategy and risk tolerance.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Ulladulla, which may limit its growth potential. The nearest transport hub, Bomaderry station, is 57.6km away, which may make it less attractive to commuters. The population of Ulladulla is 7,262, with an owner-occupier rate of 77%, indicating a strong sense of community. However, the lack of major projects and limited transport options may constrain demand and limit long-term capital growth.

## 6. Bull Case If conditions hold or improve, the upside scenario for Ulladulla is promising, with a 3-year growth forecast of 13.5%. This would put the median house price at around $1,343,000, assuming consistent growth. Additionally, if new infrastructure projects are announced or transport options improve, Ulladulla's attractiveness to buyers and renters could increase, driving up prices and yields.

## 7. Risks There are several specific risks associated with investing in Ulladulla. The distance from the CBD (57.6km to Bomaderry station) may limit long-term capital growth potential, as it may deter commuters and businesses. The supply pipeline is low, which could lead to price growth outpacing new supply, but it also means that there is limited opportunity for new development. The vacancy trend is stable, but the rental demand is only moderate, which may pose a risk to investors relying on rental income. Finally, the unemployment rate is 4.8%, which is relatively high compared to some other suburbs.

## 8. The Play For investors looking to enter the Ulladulla market, we recommend targeting properties with a minimum yield of 3.5% to mitigate the risks associated with low rental yields. The entry range for houses is around $900,000 to $1,100,000, while units are available for around $700,000 to $850,000. Investors should watch for signals such as changes in transport options, new infrastructure projects, or shifts in rental demand. The recommended strategy is to hold existing properties and monitor the market for opportunities to buy or sell, rather than actively seeking to enter or exit the market.

Flood risk: not on record for this suburb in the NSW LEP / state planning overlay. Order an independent flood certificate before commit. Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit. Heritage status is not on record — confirm with the council duty planner / a Section 10.7 (NSW) or equivalent certificate.

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.