Deakin ACT Property Investment

THE MARKET

Deakin recorded 6.0% annual price growth over the past 5 years — a $1,900,000 house bought in 2019 would be worth approximately $1,419,791 today. Properties are sitting on the market for 74 days (buyers have some room to negotiate).

- **Median house:** $1,900,000 | **Units:** $1,021,113 - **Gross yield:** 2.4% | **Net yield:** 0.9% - **Vacancy:** 2.3% (improving) | **Rental demand:** High - **5yr price growth:** 6.0%/yr | **3yr forecast:** 6.8%/yr - **Days on market:** 74 (worsening)

STR potential: $170/night at 67% occupancy = ~$41,574/yr gross. Long-term at $46,280/yr may be simpler with comparable returns.

BULL CASE

If Deakin maintains 3%+ annual growth and vacancy stays below 1.6%, median prices could reach $2,185,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Deakin pull back 10-15% from $1,900,000, with vacancy rising to 4.1% and rental yields softening as tenants gain leverage.

WHAT TO DO

Deakin presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.4% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,710,000 – $2,090,000 - Minimum yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.