Tamarama
Investment Score
82
/100
AI Intelligence Summary
Tamarama is an exclusive beachside enclave in Sydney's Eastern Suburbs, renowned for its pristine 80-meter beach and premium coastal lifestyle. With a population of just 850 residents, this intimate suburb commands some of Sydney's highest property prices, with median house prices reaching $8.5 million and units averaging $2.8 million. The demographic profile reflects its premium positioning, featuring affluent professionals, downsizers, and international residents with a median income of $165,000. The suburb is characterized by high-density apartment living (82% units) due to limited land availability and heritage restrictions. Tamarama's appeal lies in its beachfront location, forming part of the iconic Bondi to Coogee coastal walk, proximity to Bondi Junction's amenities, and strong community focus around the Surf Life Saving Club. While lacking direct rail access and local retail infrastructure, its unparalleled coastal position, low crime rates, and consistent capital growth make it a highly sought-after investment destination for those seeking premium beachside living in Sydney's most prestigious coastal corridor.
Strengths
- •Prime beachfront location with direct beach access and coastal lifestyle
- •Exceptional capital growth with 45% house price growth over 5 years
- •Ultra-low vacancy rates at 1.2% indicating strong rental demand
- •Exclusive small suburb character with limited housing stock creating scarcity value
Opportunities
- •Continued premium positioning as Sydney's coastal development intensifies
- •Potential for luxury apartment redevelopments given high land values
- •Growing demand from international buyers seeking prestige beachfront properties
- •Infrastructure improvements in broader Eastern Suburbs benefiting connectivity
Considerations
- •Extremely high entry costs limiting market accessibility and liquidity
- •Limited local amenities requiring travel to nearby suburbs for shopping and services
- •No direct rail access with reliance on bus transport
- •Narrow streets and limited parking infrastructure
Property Market
$8.50M
+12.5% 1yr
$2.80M
+8.5% 1yr
$4.50M
$3,500/wk
$1,500/wk
25
1.2%
78.0%
Price Growth
| Type | 1 Year | 3 Year | 5 Year |
|---|---|---|---|
| House | +12.5% | +28.0% | +45.0% |
| Unit | +8.5% | +22.0% | +38.0% |
Rental Yields
House Yield
2.1%
Unit Yield
2.8%
Townhouse Yield
2.4%
Investment Scorecard
Demand/Supply Ratio: 2.80
Demand exceeds supply — favourable for sellers
Tax & Financial Intelligence
CPA-grade analysis for Tamarama at median house price
+8% surcharge
$3500/wk
Negatively geared
Reduces taxable income
~$5,543/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)
$522,850
After-tax yield
1.28%
Weekly holding cost
$5543/wk
10yr CGT (est.)
$2.16M
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
850
42
$165K
per annum
45.0%
68.0%
72.0%
3.2%
42.0%
Dwelling Mix
Lifestyle & Community
12
8
2
7.0 km
Nearest Station: Bondi Junction
Premium beachside living with focus on surfing, coastal walks, fitness, and outdoor recreation, complemented by easy access to Bondi Junction's dining and shopping amenities.
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Data sourced from multiple sources. Last updated 29 March 2026.