Dulwich Hill vs Narraweena

The median house price is $2.5M in Dulwich Hill and $2.5M in Narraweena, so Dulwich Hill is the cheaper entry point, with Narraweena houses about 1% dearer.

On cash flow, Narraweena leads: houses there return a gross rental yield of 2.54%, compared with 2.23% in Dulwich Hill, a gap of 0.31 percentage points.

Over the past year house prices moved +5.2% in Dulwich Hill (an estimate) and +3.2% in Narraweena (an estimate), so recent momentum favours Dulwich Hill, although both suburbs recorded growth.

Rental vacancy is 0.8% in Narraweena and 1.1% in Dulwich Hill, so landlords in Narraweena face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Dulwich Hill is the bigger suburb, with a population of 14,046 against 6,971, roughly 2.0 times the size of Narraweena; a larger suburb usually means a deeper pool of buyers and tenants.

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