The size of Watsons Bay is approximately 1 km². It has 6 parks covering nearly 17% of the total area. The population of Watsons Bay in 1996 was 966 people. By 2001 the population was 439 showing a population decline of 55% in the area during that time. The predominant age group in Watsons Bay is 30 - 39 years.
Households in Watsons Bay are primarily couples with children and are likely to be repaying over $2000.00 per month on mortgage repayments. In general, people in Watsons Bay work in a professional occupation. In 1996, 51% of the homes in Watsons Bay were owner-occupied compared with 70% in 2001.
Currently the median sale price of houses in the area is $1,650,000.