Erowal Bay vs Waratah West

Houses cost about the same in both suburbs: the median house price is $955K in Erowal Bay and $955K in Waratah West.

For units, Erowal Bay sits at a median of $625K against $720K in Waratah West, which makes Erowal Bay the more affordable unit market and Waratah West the pricier one.

On cash flow, Waratah West leads: houses there return a gross rental yield of 3.70%, compared with 2.76% in Erowal Bay, a gap of 0.94 percentage points.

Over the past year house prices moved +2.4% in Erowal Bay and +10.4% in Waratah West, so recent momentum favours Waratah West, although both suburbs recorded growth.

Rental vacancy is 0.9% in Erowal Bay and 2.0% in Waratah West, so landlords in Erowal Bay face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Waratah West is the bigger suburb, with a population of 3,142 against 652, roughly 4.8 times the size of Erowal Bay; a larger suburb usually means a deeper pool of buyers and tenants.

In short: Waratah West for rental income, Waratah West for recent price momentum, Erowal Bay for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.