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Narooma

NSW 2546LGA: Eurobodalla Shire

Investment Score

75

/100

AI Intelligence Summary

Narooma is a picturesque coastal town on NSW's South Coast, located within the Eurobodalla Shire approximately 345km south of Sydney. With a population of around 3,100, this seaside destination combines permanent residential living with a thriving tourism economy centered around its pristine beaches, excellent fishing, and the famous annual Oyster Festival. The town attracts a mix of retirees, sea-changers, and holiday home investors drawn to its relaxed coastal lifestyle and natural beauty. Property markets have strengthened significantly post-COVID as urban dwellers seek coastal escapes, with waterfront and ocean-view properties commanding premium prices. The local economy relies heavily on tourism, fishing, and agriculture, supported by quality amenities including Narooma District Hospital, local schools, golf club, and diverse dining options. While transport connectivity is limited with no regular public transport to major cities, the town offers excellent recreational opportunities including boating, surfing, and bushwalking. Infrastructure is well-maintained through Eurobodalla Shire Council, with adequate NBN and mobile coverage. The demographic skews older than the NSW average, reflecting its appeal to retirees and empty nesters seeking a coastal lifestyle change.

Strengths

  • Stunning coastal location with pristine beaches and excellent fishing
  • Strong tourism economy providing rental income opportunities
  • Growing sea-change migration trend boosting property demand
  • Quality local amenities including hospital, schools, and recreational facilities

Opportunities

  • Growing demand for coastal lifestyle properties post-COVID
  • Holiday rental market expansion with tourism recovery
  • Infrastructure improvements supporting growth
  • Potential for boutique tourism development

Considerations

  • Limited public transport connectivity to major cities
  • Economic dependence on tourism creating seasonal fluctuations
  • Aging population demographics
  • Higher cost of living due to tourist destination status

Property Market

Median House

$750K

+8.5% 1yr

Median Unit

$485K

+7.2% 1yr

Median Townhouse

$620K

Rent (House)

$605/wk

Rent (Unit)

$475/wk

Days on Market

42

Vacancy Rate

2.8%

Auction Clearance

68.0%

Price Growth

Type1 Year3 Year5 Year
House+8.5%+28.0%+45.0%
Unit+7.2%+25.0%+42.0%

Rental Yields

House Yield

4.2%

Unit Yield

5.1%

Townhouse Yield

4.6%

Investment Scorecard

Overall Investment Score75/100
Growth Potential72/100
Cashflow Score68/100
Risk Score (lower = safer)65/100
Affordability Index55/100

Demand/Supply Ratio: 1.80

Demand exceeds supply — favourable for sellers

Tax & Financial Intelligence

CPA-grade analysis for Narooma at median house price

Standard transfer
$28,280
First Home Buyer
Exempt

Save $28,280

Foreign buyer surcharge
$60,000

+8% surcharge

Annual rent income
$31,460

$605/wk

Interest (80% LVR @ 6.5%)
-$39,000
Other expenses (~2.5%)
-$18,750
Net rental position
-$26,290

Negatively geared

Tax benefit (39% MTR)
+$10,253

Reduces taxable income

After-tax holding cost
$16,037/yr

~$308/week

Based on 9.0% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR

5-Year Hold

Est. value
$1.15M
Capital gain
$371,938
After discount
$185,969
CGT payable
$72,528

10-Year Hold

Est. value
$1.78M
Capital gain
$993,493
After discount
$496,746
CGT payable
$193,731

Investor Quick Summary

Entry cost (stamp duty)

$28,280

After-tax yield

2.56%

Weekly holding cost

$308/wk

10yr CGT (est.)

$193,731

Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). Individual circumstances vary. This is general information only and not personal financial advice. Consult your CPA before making investment decisions. Local Knowledge Pty Ltd — Registered Tax Agent.

Demographics

Population

3,100

Median Age

52

Median Income

$48K

per annum

Family Households

45.0%

Professionals

28.0%

University Educated

22.0%

Unemployment

6.2%

Born Overseas

18.0%

Dwelling Mix

Houses: 72%Units: 22%Townhouses: 6%Total: 1,850

Lifestyle & Community

Walkability65/100
Public Transport2/10
Schools Rating6/10
Safety8/10
Family Friendly7/10
Cafes & Restaurants

18

Parks

8

Hospitals

1

Distance to CBD

345.0 km

Nearest Station: No passenger rail service

Relaxed coastal living with excellent fishing, boating, surfing, golf, and bushwalking opportunities

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Data sourced from multiple sources. Last updated 28 March 2026.

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