Coolangatta QLD Property Investment

THE MARKET

Coolangatta has compounded at 11.0%/yr over 5 years — a house that cost $949,522 in 2021 is worth $1,600,000 today. Properties are sitting on market for 38 days (roughly balanced conditions). At the same growth rate, today's median reaches $2,696,093 by 2031.

- **Median house:** $1,600,000 | **Units:** $1,235,000 - **Gross yield:** 2.6% | **Net yield:** 1.1% - **5yr price CAGR:** 11.0%/yr | **3yr forecast:** 12.4%/yr - **Population:** 7,500 | **Owner-occupier rate:** 35% | **Affluence:** Above Average

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

RENTAL SNAPSHOT

- **Vacancy:** 1.5% (improving) | **Rental demand:** High - **Median weekly rent:** $795/wk | **Days on market:** 38 (stable) - Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

- **Median nightly rate:** $240/night | **Occupancy:** 68% - **Estimated annual STR gross:** ~$59,568/yr - **vs long-term rent:** $41,340/yr (+44% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Standard suburban transport access

BULL CASE

If Coolangatta maintains 3%+ annual growth and vacancy stays below 1.0%, median prices could reach $1,840,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Coolangatta pull back 10-15% from $1,600,000, with vacancy rising to 2.7% and rental yields softening as tenants gain leverage.

KEY RISKS

- Distance from CBD may limit long-term capital growth potential

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

Coolangatta 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 2.6% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,440,000 – $1,760,000 - Minimum gross 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.