Warriewood Short-Term Rental (Airbnb) Market
Warriewood NSW Investment Analysis
SUBURB INVESTMENT BRIEF — Warriewood, NSW 2102 LGA: Generated: 2026-04-11 | Estait AI Analysis
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EXECUTIVE SUMMARY
Overall Score: 55/100 — Hold
Warriewood rates as "Hold" due to weak growth indicators.
Warriewood sits in a growth phase of the property cycle with an overall investment score of 55 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: $2,400,000 Median unit price: $712,879 Median weekly rent: $1,375/week Days on market: 35 days (stable)
Warriewood commands a premium position in the NSW property landscape. Properties are spending an average of 35 days on market, suggesting balanced supply-demand dynamics.
Comparable suburbs: - Zetland (NSW): Median $2,610,153, yield 2.0%, 1yr growth 8.7% - Newtown (NSW): Median $2,000,000, yield 2.4%, 1yr growth 6.8% - Glebe (NSW): Median $2,700,000, yield 1.8%, 1yr growth 3.3%
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RENTAL MARKET
Gross rental yield: 3.0% Net rental yield: 1.5% Vacancy rate: 2.7% (stable) Rental demand: Moderate
The rental market in Warriewood is characterised by moderate demand with a vacancy rate of 2.7%, which is near the national average of approximately 2.5%. Vacancy is trending stable, maintaining steady conditions.
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. Long-term rental at $71,500/year may offer comparable or better risk-adjusted returns given lower management overhead.
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GROWTH OUTLOOK
Population growth (5yr): 0.0% Price CAGR (5yr): 0.5% Capital growth (3yr forecast): 0.5% Supply pipeline: Moderate
Development activity consistent with long-term averages
Infrastructure & transport: - No major infrastructure projects identified. Transport: Standard suburban transport access
If Warriewood maintains 3%+ annual growth and vacancy stays below 1.9%, median prices could reach $2,760,000 within 3 years with yields compressing slightly as capital values rise.
At current trajectory (0.0% growth, 2.7% vacancy, 3.0% yield), Warriewood 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: - Premium price point limits buyer pool and increases interest rate sensitivity
Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $12,774/month - At 8%: $14,088/month - At 9%: $15,449/month
A market correction or interest rate shock could see prices in Warriewood pull back 10-15% from $2,400,000, with vacancy rising to 4.9% and rental yields softening as tenants gain leverage.
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LIVEABILITY
Affluence rating: Very High Safety score: 7.8/10 Walkability: 50/100 Owner-occupied: 34%
Schools: - Warriewood Public School (primary): Rating 10.0/10 - Warriewood East Public School (primary): Rating 9.5/10 - Warriewood West Public School (primary): Rating 9.0/10 - Warriewood High School (secondary): Rating 10.0/10
Warriewood is a highly sought-after residential area with good safety ratings and moderate walkability. The 34% owner-occupier rate indicates a predominantly rental market.
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RECOMMENDATION — HOLD
Warriewood offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with moderate vacancy risk.
Conditions: 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%.
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KEY ACTION ITEMS
1. Shortlist properties in the $2,160,000 - 2,640,000 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 Warriewood 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.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.