Oxley ACT Property Investment

THE MARKET

Oxley recorded 4.8% annual price growth over the past 5 years — a $975,000 house bought in 2019 would be worth approximately $771,255 today. Properties are sitting on the market for 71 days (buyers have some room to negotiate).

- **Median house:** $975,000 | **Units:** $475,795 - **Gross yield:** 3.5% | **Net yield:** 2.0% - **Vacancy:** 2.1% (improving) | **Rental demand:** High - **5yr price growth:** 4.8%/yr | **3yr forecast:** 5.4%/yr - **Days on market:** 71 (worsening)

STR potential: $170/night at 67% occupancy = ~$41,574/yr gross. That's a **20% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Oxley maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $1,121,250 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Oxley pull back 10-15% from $975,000, with vacancy rising to 3.8% and rental yields softening as tenants gain leverage.

WHAT TO DO

Oxley 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 3.5% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $877,500 – $1,072,500 - 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.