Blue Bay vs North Narrabeen

The median house price is $2.2M in Blue Bay and $2.3M in North Narrabeen, so Blue Bay is the cheaper entry point, with North Narrabeen houses about 1% dearer.

On cash flow, North Narrabeen leads: houses there return a gross rental yield of 2.77%, compared with 1.32% in Blue Bay, a gap of 1.45 percentage points.

Over the past year house prices moved -0.1% in Blue Bay (an estimate) and +5.6% in North Narrabeen (an estimate), so recent momentum favours North Narrabeen, while Blue Bay went backwards.

Rental vacancy is 0.6% in North Narrabeen and 4.5% in Blue Bay, so landlords in North Narrabeen face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

North Narrabeen is the bigger suburb, with a population of 6,016 against 1,060, roughly 6 times the size of Blue Bay; a larger suburb usually means a deeper pool of buyers and tenants.

In short: North Narrabeen for rental income, Blue Bay for a lower purchase price, North Narrabeen for recent price momentum, North Narrabeen for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.