Kepnock QLD Property Investment

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## 2. Market Overview - Median house price: $676,541 - Median unit price: $478,440 - 1‑year price growth: +20.2 % - 5‑year CAGR: +1.9 % per year - 3‑year growth forecast: +13.5 % - Days on market: data not supplied

What it signals – The 20.2 % jump over the past year shows strong buyer appetite, but the modest 1.9 % long‑term CAGR and a forecast of 13.5 % over the next three years indicate that growth is likely to settle to a more sustainable pace. Sellers can still command premium prices today; buyers should temper expectations for continued double‑digit gains.

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## 3. Rental Market - Median weekly rent: $590 / wk - Gross rental yield: 4.5 % - Vacancy rate: data not supplied - Demand rating: data not supplied

Implication for investors – A 4.5 % yield sits above the national average for similar‑priced assets, pointing to a reasonably strong rental market. The lack of vacancy data means investors should verify local occupancy 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: data not supplied

LTR vs STR – With no STR metrics available, the long‑term rental (LTR) model remains the safer, data‑backed choice for Kepnock at this stage.

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## 5. Infrastructure & Growth Drivers No specific infrastructure projects, transport upgrades, or major employment hubs are listed for Kepnock. Consequently, current demand appears to be driven primarily by the suburb’s affordability relative to nearby coastal markets rather than by new public‑sector catalysts.

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## 6. Bull Case Assume the 3‑year forecast of +13.5 % materialises on both houses and units:

If rental demand stays strong and yields hold at 4.5 %, investors could see combined capital growth and cash‑flow returns of roughly 9–10 % p.a. over the three‑year horizon.

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## 7. Risks | Risk | Detail (with numbers) | |------|-----------------------| | Vacancy risk | No vacancy figure is supplied; a rise above 5 % could erode the 4.5 % yield. | | Interest‑rate sensitivity | Higher rates increase borrowing costs and could dampen the recent 20.2 % price surge. | | Supply pipeline | No data on upcoming developments; an influx of new units could push yields lower. | | Growth sustainability | The 1‑year jump of 20.2 % may be a one‑off; if growth reverts to the 1.9 % 5‑year CAGR, capital gains could stall. |

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## 8. The Play - Entry range: $478,440 (median unit) – $676,541 (median house) - Minimum yield target: 4.5 % gross (the current market level) - Watch signals: 1. Any published vacancy rate moving above 5 % 2. RBA rate hikes that push mortgage repayments higher than 5 % p.a. 3. Announcements of new residential projects within the suburb or adjacent zones - Recommended strategy: - Acquire a property at the lower end of the price band (units) to lock in the 4.5 % yield while leaving upside room if the 13.5 % three‑year growth materialises. - Hold for 3–5 years, monitoring vacancy and interest‑rate trends. - Re‑evaluate in 12‑month intervals; if vacancy climbs or rates rise sharply, consider refinancing or shifting to a higher‑yielding asset class.

*All figures are drawn exclusively from the supplied data.*