Woolloomooloo Short-Term Rental (Airbnb) Market
Woolloomooloo NSW Investment Analysis
HOLD
— 1.9% gross yield on a $2,498,989 median.
THE MARKET
Median house price in Woolloomooloo sits at $2,498,989 with 20 days on market and a 2.2% vacancy rate. This is a balanced market right now.
- **Median house:** $2,498,989 | **Units:** $1,260,394 - **Gross yield:** 1.9% | **Net yield:** 0.5% - **5yr price CAGR:** -3.2%/yr | **3yr forecast:** -3.6%/yr - **Population:** 13,185 | **Owner-occupier rate:** 31% | **Affluence:** Very High
- **Supply pipeline:** Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- **Vacancy:** 2.2% (worsening) | **Rental demand:** High - **Median weekly rent:** $938/wk | **Days on market:** 20 (improving) - Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- **Median nightly rate:** $195/night | **Occupancy:** 68% - **Estimated annual STR gross:** ~$48,399/yr - **vs long-term rent:** $48,776/yr (comparable — LTR offers simpler management)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Woolloomooloo maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $2,873,837 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Woolloomooloo pull back 10-15% from $2,498,989, with vacancy rising to 4.0% and rental yields softening as tenants gain leverage.
KEY RISKS
- Negative price growth suggests a softening market - Premium price point limits buyer pool and increases interest rate sensitivity
COMPARABLE MARKETS
- **Zetland** (NSW): $2,610,153 median, 2.0% yield, 8.7% 1yr growth - **Newtown** (NSW): $2,000,000 median, 2.4% yield, 6.8% 1yr growth - **Glebe** (NSW): $2,700,000 median, 1.8% yield, 3.3% 1yr growth
THE PLAY
Woolloomooloo offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough 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 4.0%.
- Entry range: $2,249,090 – $2,748,888 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market holding under 35
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.