Narooma
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
$750K
+8.5% 1yr
$485K
+7.2% 1yr
$620K
$605/wk
$475/wk
42
2.8%
68.0%
Price Growth
| Type | 1 Year | 3 Year | 5 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
Demand/Supply Ratio: 1.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for Narooma at median house price
Save $28,280
+8% surcharge
$605/wk
Negatively geared
Reduces taxable income
~$308/week
Based on 9.0% p.a. growth (from 5-year trend), 50% CGT discount, 39% MTR
5-Year Hold
10-Year Hold
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
3,100
52
$48K
per annum
45.0%
28.0%
22.0%
6.2%
18.0%
Dwelling Mix
Lifestyle & Community
18
8
1
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.