Pacific Pines QLD Property Investment

## 1. Investment Verdict Based on the data, our investment verdict for Pacific Pines, QLD is to Hold, with the single most important number justifying this decision being the Investment Scorecard rating of 59.0/100. This score indicates a stable market with potential for growth, but also highlights some risks and limitations that investors should be aware of.

## 2. Market Overview The median house price in Pacific Pines is reported to be $1,244,622 by a single source, OnTheHouse, with no peer validation available. The median unit price is $885,320. The market has experienced significant growth, with a 1-year price growth rate of 17.6% and a 5-year compound annual growth rate (CAGR) of 3.7%. The 3-year growth forecast is 13.5%, indicating a positive outlook for the suburb. However, the days on market are not available, which makes it difficult to assess the current market conditions. For buyers, this means that they should be prepared for a potentially competitive market, while sellers may be able to take advantage of the growth trend.

## 3. Rental Market The rental market in Pacific Pines is characterized by a low vacancy rate of 2.3%, indicating high demand for rental properties. The median weekly rent is $880, and the gross rental yield is 3.7%. The rental demand is rated as high, with an owner-occupier rate of 70%. This suggests that investors may be able to attract long-term tenants, but they should also be prepared for potential rental income fluctuations. The unemployment rate in the area is 5.2%, which is relatively low, and this should support the rental market.

## 4. Short-Term Rental Opportunity The short-term rental market in Pacific Pines offers a median nightly rate of $448, with an occupancy rate of 44%. Based on these numbers, the estimated annual revenue from short-term rentals would be around $73,000 (assuming 365 days of occupancy at 44% rate). However, this is lower than the potential annual revenue from long-term rentals, which would be around $45,760 (based on a 52-week rental period at $880 per week). Therefore, long-term rentals may be a better option for investors in Pacific Pines.

## 5. Infrastructure & Growth Drivers Pacific Pines has access to several infrastructure projects, including the Gold Coast Light Rail Stage 3, which is operational. The suburb is also close to Parkwood station, which is 2.2km away. The supply pipeline is low, with price growth outpacing new supply, and a limited development pipeline. This should support the growth of the suburb and attract more investors. The key growth drivers for Pacific Pines include its proximity to transport links, low supply pipeline, and high rental demand.

## 6. Bull Case If market conditions hold or improve, the upside scenario for Pacific Pines is significant. With a 3-year growth forecast of 13.5%, investors could potentially see their property values increase by around $168,000 (based on the single-source median house price of $1,244,622). This would represent a total return of around 13.5% per annum, which is higher than the 5-year CAGR of 3.7%. However, this is speculative and depends on various market factors.

## 7. Risks There are several risks associated with investing in Pacific Pines. The distance from the CBD may limit long-term capital growth potential, and the suburb has a moderate flood risk, with part of the area sitting near waterways or in a mapped flood-prone area. Investors should confirm the specific lot's exposure to flood risk before making a decision. Additionally, the bushfire risk is not on record for this suburb in the state planning overlay, and investors should order an independent Bushfire Attack Level (BAL) assessment before committing. The heritage status is also not on record, and investors should confirm with the council duty planner or obtain a Section 10.7 (NSW) or equivalent certificate before making any decisions.

## 8. The Play For investors looking to enter the Pacific Pines market, the recommended entry range is around $1,000,000 to $1,200,000 for houses, based on the single-source median house price. The minimum yield to target is around 3.5% to 4.0%, considering the gross rental yield of 3.7%. Investors should watch for signals such as changes in the vacancy rate, rental demand, and supply pipeline, as well as any updates on the flood risk and bushfire risk assessments. The recommended strategy is to hold for the long term, taking advantage of the potential growth and rental income, while being aware of the risks and limitations associated with the suburb.

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