Ultimo NSW Property Investment

THE MARKET

Median house price in Ultimo sits at $3,128,014 with 61 days on market and a 1.9% vacancy rate. This is a tight rental market right now.

- **Median house:** $3,128,014 | **Units:** $1,935,395 - **Gross yield:** 1.5% | **Net yield:** -0.0% - **Vacancy:** 1.9% (worsening) | **Rental demand:** High - **5yr price growth:** -1.6%/yr | **3yr forecast:** -1.8%/yr - **Days on market:** 61 (worsening)

STR potential: $195/night at 68% occupancy = ~$48,399/yr gross. Long-term at $46,696/yr may be simpler with comparable returns.

BULL CASE

If Ultimo maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $3,597,216 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Powerhouse Ultimo Redevelopment** (under construction). Plus 3 more projects in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Ultimo pull back 10-15% from $3,128,014, with vacancy rising to 3.4% and rental yields softening as tenants gain leverage.

WHAT TO DO

Ultimo offers balanced fundamentals but does not present an urgent buying signal. The market is in a correction phase with low vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

- Entry range: $2,815,213 – $3,440,815 - Minimum yield to target: 4.5% - 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.