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Best Streets to Buy Investment Property in Willoughby

Street-by-street analysis of Willoughby's top investment locations, including rental demand hotspots, capital growth corridors, and hidden gems.

8 min read
Last Updated: 2 January 2025

Top-Tier Investment Streets

Premium investment streets combine proximity to Willoughby Station, quality housing stock, and school catchment appeal. McClelland Street, Sailors Bay Road, and Eastern Valley Way deliver consistent 4-6% annual growth with sub-2% vacancy rates. These streets attract executive tenants paying $1,300-$1,600/week for 4-bedroom homes. Unit blocks in Willoughby Road and High Street achieve 4.2-4.5% yields with rapid tenant placement (7-10 days).

McClelland Street Median
$2.4M
↗ Rising
Sailors Bay Road Median
$2.6M
↗ Rising
Willoughby Road Units
$850K-$1.1M
↗ Rising
High Street Units
$780K-$950K
↗ Rising

Transport-Oriented Development (TOD) Zone

Properties within 600m of Willoughby Station (High Street, Jersey Street, Willoughby Road, Mowbray Road) command 12-18% rental premiums due to commuter appeal. Units in this zone achieve yields of 4.0-4.5% with near-zero vacancy. Target older unit blocks (1970s-1980s) for renovation upside - post-upgrade rents increase $80-120/week. Station proximity also drives capital growth outperformance (+1.5% annually vs suburb average).

Street/PrecinctProperty TypeMedian PriceRental YieldKey Strength
High Street (near station)Units$850K4.2%Commuter demand
Willoughby Road (central)Mixed$1.2M3.8%Retail/dining proximity
McClelland StreetHouses$2.4M3.0%School catchment
Sailors Bay RoadHouses$2.6M2.9%Prestige/views
Eastern Valley WayHouses$2.2M3.1%Parkland access
Jersey StreetUnits$780K4.4%Entry-level yield

School Catchment Corridors

McClelland Street, Boundary Road, and Willoughby Road East sit within Willoughby Girls High catchment (top 10 public school statewide). Family tenants pay $1,200-$1,500/week for 3-4 bedroom homes, with 3.2-year average tenancies. These streets experience December-February rental peaks as families secure homes before school year. Capital growth is defensive (only 2-3% decline during 2017-2019 correction vs 8-10% suburb-wide).

Hidden Gem Streets

Undervalued streets offering superior risk-adjusted returns: Small Street (units $720K-820K, yields 4.5%), Crabbes Avenue (houses $1.7M-1.9M, renovation opportunities), and Mowbray Road West (mixed $900K-1.4M, gentrification potential). These streets lack prestige cache but deliver higher yields and stronger tenant demand due to affordability. 10-year hold likely to outperform blue-chip streets due to lower entry point.

Streets to Avoid

Lower-performance streets due to poor connectivity or unfavorable characteristics: Edgecliff Esplanade (steep terrain, limited parking), sections of Warrane Road (traffic noise from Warringah Freeway), and Fullers Road (split-level homes, limited appeal to tenants). These streets experience 3-4 week vacancy periods and 10-15% rent discounts. Avoid purchasing on main roads (Penshurst Street, Willoughby Road south) due to noise and air quality concerns.

Future Growth Corridors

Western Harbour Tunnel construction (completion 2028) will transform Ernest Street, Eastern Valley Way, and Mowbray Road into high-connectivity corridors. Properties along these routes expected to achieve 8-12% capital growth 2027-2029 as commute times decrease. Early entry opportunity: Ernest Street units currently $820K (vs $880K suburb median) will likely close gap post-tunnel opening. Infrastructure premium typically 2-3 years ahead of completion.

Frequently Asked Questions

Get instant answers to common questions about home loans, grants, and the buying process.

Q1.What are the best streets to buy investment property in Willoughby?

Top-tier streets include: High Street (units $850K-$1.1M, 4.1% yields, near station), McClelland Street (houses $2.1M-$2.6M, premium school catchment), Mowbray Road (mixed $1.4M-$2.3M, village amenities), and Sailors Bay Road (prestige $2.5M-$3.5M, harbor proximity). Properties within 600m of Willoughby Station command 12-18% rental premiums and faster tenant placement.

Q2.Which Willoughby streets have the highest rental yields?

High-yield streets: Small Street (units 4.5%, $720K-$820K), Jersey Street (units 4.4%, $780K), High Street older units (4.6% post-renovation, $850K), and mixed-use Willoughby Road commercial strip (4.8% with ground-floor retail). These streets sacrifice prestige for superior cashflow, ideal for yield-focused investors.

Q3.Should I buy near Willoughby Girls High School catchment?

Yes, if targeting long-term family tenants. School catchment streets (McClelland, Boundary Road, Willoughby Road East) attract families paying $1,200-$1,500/week with 3.2-year average tenancies (vs 2.1 years suburb-wide). These properties show defensive capital growth, declining only 2-3% during downturns vs 8-10% suburb-wide. Expect December-February rental demand peaks.

Q4.What streets should I avoid when buying investment property in Willoughby?

Avoid: Edgecliff Esplanade (steep terrain, parking issues), Warrane Road near Warringah Freeway (traffic noise), Fullers Road (split-level homes, limited tenant appeal), and main road properties (Penshurst Street, Willoughby Road south) due to noise and air quality. These streets experience 3-4 week vacancy periods and require 10-15% rent discounts.

Q5.Are there any hidden gem streets in Willoughby for investors?

Undervalued opportunities: Small Street (units $720K-$820K, 4.5% yields), Crabbes Avenue (houses $1.7M-$1.9M, renovation upside), and Mowbray Road West (mixed $900K-$1.4M, gentrification potential). These streets lack prestige but deliver higher yields and tenant demand due to affordability. 10-year hold likely outperforms blue-chip streets due to lower entry points.

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