Hackett ACT Property Investment

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## 2. Market Overview - Median house price: $1,301,000 - Median unit price: $460,170 - 1‑yr price growth: 2.9% - 5‑yr CAGR: 3.2% per annum - 3‑yr growth forecast: 13.5% (projected) - Days on market: data not supplied (N/)

Signal: Price growth is modest but positive, and the 13.5% forecast over the next three years suggests upward momentum. With no days‑on‑market figure, we cannot gauge seller urgency, but the steady growth leans toward a buyer‑friendly environment for long‑term capital appreciation.

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## 3. Rental Market - Median weekly rent: $720 / wk - Gross rental yield: 2.9% - Vacancy rate: not provided - Demand rating: not provided

Interpretation: A 2.9% gross yield is modest for investors, indicating that rental income will primarily support cash‑flow rather than generate strong returns. The absence of vacancy data means we cannot fully assess rental risk, but the yield suggests a stable, if not high‑yielding, rental market.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: not provided - STR occupancy: not provided - Estimated annual STR revenue: not provided

Conclusion: With no STR metrics available, we cannot quantify the short‑term rental upside. Given the modest long‑term yield and lack of STR data, long‑term rental (LTR) remains the more defensible strategy at present.

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## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: not supplied

Implication: Without specific infrastructure or employment information, we cannot identify concrete demand catalysts or constraints. The suburb’s proximity to Canberra’s CBD (within 5 km) is a positive attribute, but no further drivers are documented.

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## 6. Bull Case If the 3‑year growth forecast of 13.5% materialises:

• Projected median house price in 3 years:

• Capital gain: roughly $175,000 per median house.

Assuming rent keeps pace with price growth, the gross yield could stay near 2.9% while the asset value climbs, delivering both modest cash flow and solid capital appreciation.

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## 7. Risks - Vacancy risk: No vacancy data; a rise could erode the already modest 2.9% yield. - Single‑employer dependency: No employment data; reliance on a dominant employer would increase sensitivity to job losses. - Supply pipeline: No information on upcoming housing supply; a surge could pressure prices and yields. - Interest‑rate sensitivity: With a 2.9% yield, any increase in borrowing costs could squeeze net returns, especially for leveraged buyers.

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## 8. The Play - Entry range: Around the median house price of $1,301,000 (or slightly below for motivated sellers). - Minimum yield target: ≥ 2.9% gross (aim for higher if possible to buffer rate hikes). - Watch signals: - Release of local vacancy statistics. - Announcements of new infrastructure or housing developments. - Movements in the Reserve Bank’s cash‑rate. - Recommended strategy: Acquire at or below the median price, hold for 3–5 years to capture the forecast 13.5% capital growth, and focus on long‑term rental income while monitoring the above signals for any shift toward a higher‑yield or STR opportunity.