Sunset QLD Property Investment

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## 2. Market Overview - Median house price: $282,861 - Median unit price: $186,752

• 1‑year price growth: +5.5%
• 5‑year CAGR: –0.9% per year (price decline over the longer term)
• 3‑year forecasted growth: +11.8%

• Days on market: N/A (no data)

Signal: The short‑term (+5.5% YoY) and forecast (+11.8% over three years) growth suggest buying pressure, but the negative 5‑year CAGR shows the market has struggled historically. With no days‑on‑market figure, we cannot gauge seller urgency, but the yield and forward‑looking growth hint that buyers with a long‑term horizon can still find value.

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## 3. Rental Market - Median weekly rent: $480 - Gross rental yield: 8.8%

• Vacancy rate: N/A
• Demand rating: N/A

Implication: An 8.8% yield is well above the national average, indicating strong cash‑flow potential. The lack of vacancy data means investors should verify local vacancy levels before committing, but the high yield alone supports a “hold” stance for income‑oriented portfolios.

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## 4. Short‑Term Rental (STR) Opportunity - STR nightly rate: N/A - STR occupancy: N/A - Estimated annual STR revenue: N/A

Conclusion: Because no STR metrics are supplied, we cannot model short‑term returns. With a solid long‑term yield of 8.8%, the default recommendation is to prioritise Long‑Term Rental (LTR) until STR data becomes available.

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## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: N/A

Interpretation: No specific infrastructure or employment data is provided, so we cannot attribute demand to new projects or major employers. The forecasted 11.8% growth over three years may be driven by broader regional trends rather than suburb‑specific catalysts.

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## 6. Bull Case Assume the 3‑year forecast materialises and the market remains stable:

Upside: Capital appreciation of roughly $33,000 on a median house and $22,000 on a median unit, while the high yield continues to generate strong cash flow.

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## 7. Risks | Risk | Detail (with numbers) | |------|-----------------------| | Price weakness | 5‑year CAGR of ‑0.9%/yr shows the suburb has been declining over the medium term. | | Vacancy uncertainty | No vacancy data – a higher vacancy could erode the 8.8% yield. | | Interest‑rate sensitivity | With an 8.8% yield, any rise in borrowing costs directly squeezes net cash flow. | | Supply pipeline | No data on new housing supply; a surge in construction could increase competition and push rents down. | | Economic concentration | No information on major employers; if the suburb relies on a single industry, a downturn there would impact both price and rent. |

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## 8. The Play - Entry price range: $186,752 – $282,861 (median unit to median house). Target properties at the lower end of the range to maximise yield. - Minimum yield target: ≥ 8.8% (match or exceed the current gross yield). - Watch signals: 1. Release of any vacancy statistics for Sunset. 2. Changes in the 3‑year growth forecast or actual price movements. 3. Interest‑rate movements that affect borrowing costs. 4. Announcements of new residential developments or infrastructure projects.

Recommended strategy: Acquire a median‑priced house or a well‑priced unit that delivers at least the 8.8% gross yield. Hold for 3‑5 years to capture the forecasted 11.8% capital growth while collecting strong rental income. Re‑assess annually against vacancy data and interest‑rate trends; if vacancy rises or rates climb sharply, consider repositioning or exiting.