Moorooka QLD Property Investment

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## 2. Market Overview - Median house price: $1,472,652 - Median unit price: $905,000 - 1‑year price growth: 15.9 % - 5‑year CAGR: 3.3 % per annum - 3‑year growth forecast: 13.5 %

*Signal:* The 15.9 % price jump in the last 12 months shows strong buyer demand, while the 3‑year forecast of 13.5 % suggests the market will keep climbing. With no days‑on‑market figure supplied, we cannot gauge how quickly properties are selling, but the price momentum indicates a seller‑favourable environment for now.

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## 3. Rental Market - Median weekly rent: $690 - Gross rental yield: 2.4 %

*Vacancy rate* and *demand rating* are not provided.

*Interpretation:* A 2.4 % yield is below the 4‑5 % range that many investors target, meaning rental income alone will not drive returns. The strong capital‑gain outlook is therefore the primary attraction for investors.

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## 4. Short‑Term Rental Opportunity All STR metrics (nightly rate, occupancy, estimated annual revenue) are not provided.

*Conclusion:* Without data we cannot quantify STR profitability, so a long‑term rental (LTR) strategy remains the default recommendation.

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## 5. Infrastructure & Growth Drivers No specific information on projects, transport upgrades, or major employers is supplied.

*Implication:* The high investment score (72/100) and robust price growth imply underlying demand drivers—likely proximity to Brisbane’s transport corridors and industrial employment—but we cannot cite exact figures.

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

\*Calculated as Current × (1 + 13.5 %). If the forecast holds, investors could realise roughly $200 k capital gain on a median house over three years, delivering an annualised return of about 4.3 % (ignoring rental income).

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | Vacancy rate not supplied; a low yield (2.4 %) means any rise in vacancy will further erode cash flow. | | Single‑employer dependency | Employment base not disclosed; reliance on a limited number of large employers could amplify downside if those firms downsize. | | Supply pipeline | No data on upcoming dwellings; a surge in new construction could pressure rents and yields. | | Rate sensitivity | With a 2.4 % gross yield, investors depend heavily on capital growth. Higher interest rates could reduce affordability, slowing price appreciation. |

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## 8. The Play - Entry range: Target purchases near the median values – $1.45 M–$1.50 M for houses and $880 k–$930 k for units. - Minimum yield target: Aim for ≥2.4 % (the current gross yield) and look for properties with lower outgoings or higher rent to push the net yield higher. - Watch signals: 1. Release of days‑on‑market data – a falling figure would confirm continued seller momentum. 2. Changes in the local vacancy rate – a rise would flag cash‑flow pressure. 3. New infrastructure announcements or major employer expansions – could accelerate price growth. 4. Interest‑rate movements – higher rates may temper buyer enthusiasm. - Recommended strategy: Acquire a median‑priced house or unit now, hold for 3–5 years to capture the projected 13.5 % capital gain, and collect the modest rental income. Re‑assess annually against vacancy data and any new supply entering the market. If STR data later emerges showing strong nightly rates and occupancy, consider a conversion to short‑term letting to boost returns.