Lyons ACT Property Investment

THE MARKET

Lyons recorded 25.2% annual price growth over the past 5 years — a $1,300,000 house bought in 2019 would be worth approximately $422,592 today. Properties are sitting on the market for 74 days (buyers have some room to negotiate).

- **Median house:** $1,300,000 | **Units:** $572,403 - **Gross yield:** 2.8% | **Net yield:** 1.3% - **Vacancy:** 2.9% (stable) | **Rental demand:** Moderate - **5yr price growth:** 25.2%/yr | **3yr forecast:** 28.4%/yr - **Days on market:** 74 (worsening)

STR potential: $170/night at 67% occupancy = ~$41,574/yr gross. That's a **14% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Lyons maintains 3%+ annual growth and vacancy stays below 2.0%, median prices could reach $1,495,000 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Lyons Mixed-Use Residential Development** (planned).

BEAR CASE

A market correction or interest rate shock could see prices in Lyons pull back 10-15% from $1,300,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

WHAT TO DO

Lyons presents a compelling investment opportunity. The combination of solid fundamentals and moderate rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.8% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,170,000 – $1,430,000 - 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.