Farrer ACT Property Investment

Unincorporated ACT · 2607 · Score: 72/100 · Buy

Median House Price
$1.44M
Rental Yield
3.0%
Vacancy Rate
2.0%
Median Weekly Rent
$820/wk
Median Unit Price
$603K
Population
3,787
Days on Market
35 days
Annual Growth
-5.9%

Farrer Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$365.69/night
Occupancy Rate
52%
Est. Annual Revenue
$69K
AI Investment Analysis

Farrer ACT Investment Brief

BUY3.0% gross yield on a $1,440,000 median.

THE MARKET

Farrer has compounded at 5.2%/yr over 5 years — a house that cost $1,117,593 in 2021 is worth $1,440,000 today. Properties are sitting on market for 35 days (roughly balanced conditions). At the same growth rate, today's median reaches $1,855,416 by 2031.

  • Median house: $1,440,000 | Units: $603,287
  • Gross yield: 3.0% | Net yield: 1.5%
  • 5yr price CAGR: 5.2%/yr | 3yr forecast: 13.5%/yr
  • Population: 3,787 | Owner-occupier rate: 72% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 2.0% (improving) | Rental demand: High
  • Median weekly rent: $820/wk | Days on market: 35 (stable)
  • Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

  • Median nightly rate: $366/night | Occupancy: 52%
  • Estimated annual STR gross: ~$69,408/yr
  • vs long-term rent: $42,640/yr (+63% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • ACT Light Rail Stage 2B (Woden) (Announced)
  • ACT Light Rail Stage 2A (Under Construction)
  • Transport: Well-connected inner-city location

BULL CASE

If Farrer maintains 3%+ annual growth and vacancy stays below 1.4%, median prices could reach $1,656,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Farrer pull back 10-15% from $1,440,000, with vacancy rising to 3.6% and rental yields softening as tenants gain leverage.

KEY RISKS

  • No significant risk factors identified for this suburb

COMPARABLE MARKETS

  • Kaleen (ACT): $1,010,000 median, 3.6% yield, 4.2% 1yr growth
  • Narrabundah (ACT): $1,366,000 median, 3.1% yield, 15.3% 1yr growth
  • Downer (ACT): $1,193,000 median, 3.1% yield, 2.2% 1yr growth

THE PLAY

Farrer 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 3.0% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.

  • Entry range: $1,296,000$1,584,000
  • Minimum gross 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.

Gentrification Index

Early gentrification signals4.0/10
High SEIFA decile — already upgraded or established affluent area
Moderate capital growth (5.2% CAGR)
Inner/middle ring location (10.9km to CBD) — high gentrification corridor
Active development pipeline (22865 approvals) — supply attracting new residents
Strong public transport infrastructure — supports walkable gentrification

Growth Forecast

high confidence
1yr Forecast
5.2%
p.a.
2yr Forecast
4.8%
p.a.
5yr Forecast
4.2%
p.a.

Basis: 5yr CAGR 5.2% + 10yr CAGR 5.3%

Growth drivers
  • +Above-average population growth (1.6%/yr)
  • +Low rental vacancy (2.0%) — constrained supply
  • +Premium transport infrastructure — supports long-term capital growth
Headwinds
  • High supply pipeline (22865 new approvals) — may cap price growth

Suburb Metric Thresholds

8 green5 yellow3 red
Rental Vacancy Rate
2 high impact
Days on Market
35 high impact
Weekly Rent (house)
820 medium impact
5yr Price CAGR
5.21 high impact
10yr Price CAGR
5.3 high impact
1yr Price Growth
-5.94 medium impact
Population Growth
1.57 high impact
Median Household Income
2418 medium impact
Unemployment Rate
3.8 medium impact
Public Transport Score
37 medium impact
School Zone Quality
7.4 medium impact
Distance to CBD
10.94 medium impact
SEIFA Advantage/Disadvantage
10 medium impact
Owner Occupier Rate
72 medium impact
Gross Rental Yield (%)
2.96 high impact
Net Rental Yield (%)
1.46 high impact

Macro Environment

Macro Indicators

Cash Rate

4.35%

0.25%

Cash rate as at 2026-05-06 · Credit data 2026-04

Suburb Supply & Demand

Suburb Supply Pipeline — New Dwelling Approvals

4,928

2020

5,078

2021

6,172

2022

3,856

2023

2,831

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2607

Most disadvantagedLeast disadvantaged

Decile 10 of 10 — Low disadvantage

Population

14,717

Education (IEO)

10/10

Econ. Resources (IER)

9/10

10-Year Investment Projection

Modelled on Farrer ACT data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $820/wk median rent for Farrer. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Farrer Primary School
PrimaryGovernment
8.3/10
Canberra College
SecondaryGovernment
7.7/10
Melrose High School
SecondaryGovernment
7.5/10

These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.