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
A decision, not just a search · Tamarama
Does a promising suburb make this the right property decision?
No. Suburb data can help you shortlist, but it cannot establish the value, condition or suitability of a particular property. Compare buying, retaining your current property and waiting against your household cash flow, finance conditions and intended holding period.
Questions that could change the answer
- What would make this location unsuitable even if its median price rises?
- Could you meet the costs if income falls, the property is vacant or repairs are needed?
- Are you comparing a specific property with genuinely comparable sales—or only an area average?
Evidence to obtain—not yet verified here
- Comparable property evidence with transaction dates and relevant differences.
- Current loan terms, household commitments and a realistic cash-flow buffer.
- Property inspections, contract advice and ownership/tax advice where relevant.
Other options: Shortlist another property, retain what you own, reduce the budget or delay. Growth expectations alone are not a reason to proceed.
Next action: Ask a Property Advisor to connect the property evidence with your priorities, and identify the finance, tax or legal professional required for unresolved questions.
When to revisit: Revisit if the price, lending terms, inspection findings or household circumstances change.
General decision guidance—not a property assessment, personal recommendation or verified client result. Dates on surrounding market content apply to that content, not to checks on your property.
Take this question to a reviewThe question and suggested checks are prefilled for you to edit. No enquiry is sent until you submit and consent.
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
Stamp Duty Estimate
+8% surcharge
Negative Gearing Position
Wage offset available until 1 July 2027
An established purchase today falls under the 2026 reforms. From 1 July 2027, losses on established residential property can only offset residential rental income or residential capital gains — not your salary.
$3500/wk
Negatively geared
Reduces taxable income until 1 July 2027
~$5,543/week
Land Tax Exposure
~60% of median price
Annual: $64,500
Annual: $81,300
CPA Note: Land tax applies to your total NSW land holdings, not individual properties. Portfolio holders should aggregate all investment land values.
CGT Projection
Based on 9.0% p.a. growth (from 5-year trend), CPI indexation + 30% minimum rate, 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.)
$3.32M
Estimates based on FY2025 NSW rates at median house price. Assumes 80% LVR, 6.5% interest rate, 39% marginal tax rate ($135K-$190K bracket). This calculator provides estimates for illustrative purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation. Tax laws, interest rates, and market conditions change frequently. Always consult a qualified professional — such as a CPA, mortgage broker, or financial adviser — before making financial decisions. Local Knowledge Group of Companies provides integrated advisory through Local Knowledge (CPA), Local Knowledge Finance (Mortgage Brokerage), and Local Knowledge Property (Licensed Agency).
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.
Interested in Tamarama?
Get a personalised buyer brief with AI-powered property intelligence for this suburb.
Request Your Free Buyer BriefClose Form
See What ASPIRE Has Found For You
Get a personalised preview of what our AI intelligence has identified for your situation — in seconds.
Data sourced from multiple sources. Last updated 11 April 2026.