Rocklea QLD Property Investment

THE MARKET

Rocklea recorded 12.5% annual price growth over the past 5 years — a $803,000 house bought in 2019 would be worth approximately $445,608 today. Properties are sitting on the market for 41 days (roughly balanced conditions).

- **Median house:** $803,000 | **Units:** $443,750 - **Gross yield:** 3.6% | **Net yield:** 2.1% - **Vacancy:** 2.1% (improving) | **Rental demand:** High - **5yr price growth:** 12.5%/yr | **3yr forecast:** 14.0%/yr - **Days on market:** 41 (stable)

STR potential: $185/night at 70% occupancy = ~$47,268/yr gross. That's a **65% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Rocklea maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $923,450 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Rocklea Station Rebuild (Cross River Rail)** (completed). Plus 3 more projects in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Rocklea pull back 10-15% from $803,000, with vacancy rising to 3.8% and rental yields softening as tenants gain leverage.

WHAT TO DO

Rocklea 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 3.6% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $722,700 – $883,300 - Minimum yield to target: 4.5% - Watch signal: vacancy dropping 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.