Coombabah QLD Property Investment

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## 2. Market Overview - Median house price: $941,000 - Median unit price: $787,500

• 1‑year price growth: +16.7 % – strong upside in the last 12 months.
• 5‑year CAGR: +2.8 % per year – growth has slowed over the longer term.
• 3‑year forecast: +13.5 % – analysts expect another round of price appreciation.

• Days on market: *data not supplied* – without this figure we cannot quantify the speed of sales, but the recent 16.7 % annual rise suggests a seller‑leaning market.

Signal: Buyers face high price momentum and must act quickly; sellers can command premium prices but should be prepared for modest negotiating power as growth moderates.

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## 3. Rental Market - Median weekly rent: $760 - Gross rental yield: 4.2 %

• Vacancy rate: *data not supplied* – we cannot comment on current vacancy levels.
• Demand rating: *data not supplied* – however, a 4.2 % yield indicates reasonable demand relative to price.

Implication: The yield supports a stable cash‑flow profile for long‑term investors, but the absence of vacancy data means investors should verify local vacancy trends before committing.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: *data not supplied* - STR occupancy: *data not supplied* - Estimated annual STR revenue: *cannot be calculated without nightly rate and occupancy*

Conclusion: With no STR metrics available, long‑term rental (LTR) remains the clearer strategy for Coombabah at this time.

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## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: *data not supplied*

The 13.5 % three‑year price forecast implies underlying demand drivers (e.g., regional employment growth or amenity upgrades), but specific projects cannot be cited without source data.

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## 6. Bull Case If the 13.5 % three‑year growth forecast materialises:

A price lift of roughly $126,000 for houses and $106,500 for units would boost equity for owners and improve future resale yields.

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## 7. Risks | Risk | Detail (numbers where available) | |------|-----------------------------------| | Vacancy risk | No vacancy data; a rise in vacancies would compress the 4.2 % yield. | | Single‑employer dependency | No employment data supplied; reliance on a dominant employer could increase exposure if that employer contracts. | | Supply pipeline | No information on upcoming developments; a surge in new units could increase competition and lower rents. | | Rate sensitivity | With a 4.2 % gross yield, any increase in borrowing rates erodes net cash flow, especially if yields do not rise in step. |

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## 8. The Play - Entry price range: Target purchases between $900,000 – $950,000 for houses or $750,000 – $800,000 for units, aligning with current medians. - Minimum yield to target: Aim for ≥ 4.5 % net yield to provide a buffer against interest‑rate hikes. - Watch signals: 1. Publication of actual days‑on‑market and vacancy figures. 2. Announcement of any major infrastructure or employment projects in the area. 3. Movements in the Reserve Bank of Australia cash‑rate that could affect financing costs.

• Recommended strategy:
• - Existing owners should hold and monitor the above signals, considering refinancing if rates fall to protect the 4.2 % yield.
• - New investors may enter at the lower end of the price band, but only after confirming vacancy and supply data. Long‑term rental remains the preferred approach until reliable short‑term rental metrics become available.