Benowa QLD Property Investment

THE MARKET

Benowa has compounded at 4.1%/yr over 5 years — a house that cost $1,390,578 in 2021 is worth $1,700,000 today. Properties are sitting on market for 34 days (roughly balanced conditions). At the same growth rate, today's median reaches $2,078,273 by 2031.

- **Median house:** $1,700,000 | **Units:** $240,809 - **Gross yield:** 3.8% | **Net yield:** 2.3% - **5yr price CAGR:** 4.1%/yr | **3yr forecast:** 4.6%/yr - **Population:** 26,421 | **Owner-occupier rate:** 32% | **Affluence:** High

- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

- **Vacancy:** 1.8% (improving) | **Rental demand:** High - **Median weekly rent:** $1,250/wk | **Days on market:** 34 (stable) - Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

- **Median nightly rate:** $185/night | **Occupancy:** 70% - **Estimated annual STR gross:** ~$47,268/yr - **vs long-term rent:** $65,000/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

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

BULL CASE

If Benowa maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,955,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Benowa pull back 10-15% from $1,700,000, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

KEY RISKS

- No significant risk factors identified for this suburb

COMPARABLE MARKETS

- **Albany Creek** (QLD): $1,200,000 median, 3.2% yield, 12.5% 1yr growth - **Alderley** (QLD): $1,700,000 median, 2.0% yield, 21.8% 1yr growth - **Alexandra Headland** (QLD): $1,400,000 median, 2.8% yield, -17.9% 1yr growth

THE PLAY

Benowa 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 3.8% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,530,000 – $1,870,000 - Minimum gross yield to target: 4.5% - Watch signal: vacancy staying below 2% and days on market holding under 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.