O'Connor ACT Property Investment

THE MARKET

Median house price in O'Connor sits at $1,670,225 with 57 days on market and a 1.8% vacancy rate. This is a tight rental market right now.

- **Median house:** $1,670,225 | **Units:** $1,062,336 - **Gross yield:** 4.7% | **Net yield:** 3.2% - **5yr price CAGR:** -0.2%/yr | **3yr forecast:** -0.3%/yr - **Population:** 13,612 | **Owner-occupier rate:** 28% | **Affluence:** Very High

- **Supply pipeline:** Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

- **Vacancy:** 1.8% (worsening) | **Rental demand:** High - **Median weekly rent:** $1,511/wk | **Days on market:** 57 (worsening) - Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

- **Median nightly rate:** $170/night | **Occupancy:** 67% - **Estimated annual STR gross:** ~$41,574/yr - **vs long-term rent:** $78,572/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If O'Connor maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,920,759 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in O'Connor pull back 10-15% from $1,670,225, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

KEY RISKS

- Negative price growth suggests a softening market

COMPARABLE MARKETS

- **Acton** (ACT): $2,039,118 median, 1.5% yield, 10.9% 1yr growth - **Ainslie** (ACT): $1,400,000 median, 3.0% yield, -0.3% 1yr growth - **Aranda** (ACT): $1,400,000 median, 2.5% yield, 3.8% 1yr growth

THE PLAY

O'Connor 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 4.7% and prioritise properties with value-add potential. Consider timing entry around the current correction phase of the market cycle.

- Entry range: $1,503,202 – $1,837,248 - Minimum gross yield to target: 5.0% - Watch signal: vacancy staying 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.