Cammeray NSW Property Investment

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## 2. Market Overview - Median house price: $3,900,000 - Median unit price: $1,300,000 - 1‑yr price growth: 3.2% - 5‑yr CAGR: 4.1% per year - 3‑yr growth forecast: 4.1% per year

*Signal:* The suburb is delivering modest but consistent capital growth (3.2% over the past year and a 4.1% annualised forecast). This environment favours sellers who can command premium prices, yet it still leaves room for buyers to acquire assets that are likely to appreciate at a steady rate.

*Days on market:* Data not provided – we cannot comment on current selling speed.

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## 3. Rental Market - Median weekly rent: $1,750 / wk - Gross rental yield: 2.3%

*Vacancy rate & demand rating:* Data not provided.

*Interpretation:* A 2.3% gross yield is modest, indicating that rental income will cover a small portion of financing costs. Investors should rely on capital growth rather than cash‑flow from rent, unless they can secure a lower purchase price or a higher rent through property upgrades.

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

*Conclusion:* With no STR data available, we cannot quantify the short‑term rental upside. Given the strong proximity to the CBD (within 5 km) and high median rents, a long‑term rental (LTR) strategy remains the more reliable approach until STR metrics are sourced.

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## 5. Infrastructure & Growth Drivers - Known projects, transport links, employment base: Data not provided

*Implication:* The lack of specific infrastructure data means investors should conduct a targeted due‑diligence check on upcoming council developments, transport upgrades (e.g., bus or light‑rail extensions), and major employers in the area to confirm the drivers behind the observed price growth.

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## 6. Bull Case Assume the 3‑yr growth forecast of 4.1% per year materialises and the suburb maintains its premium pricing power:

If rental yields improve to 2.8% (through rent growth outpacing price growth), the annual gross rent on a $3,900,000 house would rise from $91,000 to ≈ $109,200, enhancing cash‑flow potential.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | Vacancy rate not supplied; a rise above 5% could erode the already thin 2.3% yield. | | Single‑employer dependency | No data on employment concentration; a dominant employer exiting the area would pressure rents and prices. | | Supply pipeline | No data on upcoming dwellings; a surge in new units could increase competition and push yields lower. | | Rate sensitivity | With a 2.3% gross yield, any increase in borrowing costs directly reduces net cash flow, making the investment more reliant on capital growth. |

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## 8. The Play - Entry range: - Houses: $3.8 M – $4.0 M (slightly below the median to capture upside) - Units: $1.2 M – $1.4 M

• Minimum yield target: ≥ 2.3% gross (the current market level) – aim for any property that can deliver a higher yield through renovation or superior rent negotiations.

• Watch signals:

• Recommended strategy: Acquire a high‑quality house or premium unit at the lower end of the entry range, hold for 3‑5 years to capture the projected 4.1% CAGR, and monitor rental market data to see if the gross yield can be nudged above 2.3% through rent reviews or minor upgrades. If STR data later emerges showing strong nightly rates and occupancy, reassess the potential for a mixed‑use (long‑term + short‑term) model.