In the footage, a man believed to be the attacker, is seen walking away from the bus stop before turning around to follow the woman.
The elderly woman had her handbag snatched as she stepped off the bus on Wellington St about 3.15pm Wednesday.
The neighbour said he himself had been a victim of minor crimes in the past but did not think the neighbourhood was dangerous.
"The reason I've got security cameras is because we've had things removed from our yard that shouldn't have been, and one of our cars was broken into in the driveway," he said.
The man said she did not know the victim, but believed she lived in the neighbourhood.
Detective Senior Sergeant Ross Paterson of Waikato CIB said police were disgusted by the attack on a vulnerable victim.
"The type of attack on such a vulnerable member of the community is unacceptable. The fact that she only suffered some minor cuts is irrelevant," he said.
The 97-year-old had alighted the bus at the bus stop when the man grabbed her handbag and knocked her to the ground, Mr Patterson said.
He then fled down Jellicoe Drive with the woman's handbag.
Mr Patterson described the woman as "active" and said she did not deserve this type of treatment.
"We would like to hear from anyone who may have witnessed this event or was riding the bus from the city that stopped at Wellington St at this time," he said.
Anyone with information is asked to contact Hamilton police on 07 8586200 or leave information anonymously with Crimestoppers on 0800 555111.
