Walloon QLD Property Investment

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## 2. Market Overview - Median house price: $810,000 - Median unit price: $939,831 - 1‑yr price growth: 8.0 % - 5‑yr CAGR: 3.3 % per year - 3‑yr growth forecast: 13.5 % - Days on market: *Data not supplied*

What it signals: - An 8 % price rise in the last 12 months shows strong recent momentum. - A 3.3 % CAGR over five years indicates steady long‑term appreciation. - The 13.5 % forecast for the next three years suggests the market is expected to keep accelerating. - Without days‑on‑market data we cannot gauge seller urgency, but the price growth alone points to a seller‑friendly environment for now.

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## 3. Rental Market - Median weekly rent: $610 - Gross rental yield: 3.9 % - Vacancy rate: *Data not supplied* - Demand rating: *Data not supplied*

Implication for investors: A 3.9 % gross yield sits in the moderate range for regional Queensland, offering a reasonable cash‑flow base while the strong price growth provides upside potential. The lack of vacancy and demand data means investors should verify local occupancy levels 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 short‑term rental metrics available, we cannot quantify the STR upside. Given the solid long‑term yield (3.9 %) and strong price growth, a traditional long‑term rental (LTR) remains the safer default strategy until STR data emerges.

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## 5. Infrastructure & Growth Drivers - Known projects, transport, employment base: *Data not supplied*

Current demand drivers: In the absence of specific infrastructure or employment information, the primary driver appears to be price momentum (8 % YoY growth) and the projected 13.5 % three‑year appreciation. Investors should monitor any announced transport upgrades or regional employment initiatives that could further boost demand.

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## 6. Bull Case Assume the 3‑year growth forecast of 13.5 % materialises on the current median house price of $810,000:

• Projected median house price in 3 years: $918,150 (13.5 % increase).
• Potential capital gain: $108,150 per median property, or 13.5 % upside.

If rental yields hold at 3.9 % and rents rise in line with price growth, total investor return could exceed 17 % over the three‑year horizon (capital gain + rental income).

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## 7. Risks | Risk | Detail (with numbers where available) | |------|----------------------------------------| | Vacancy risk | No vacancy data supplied; a higher-than‑expected vacancy could erode the 3.9 % yield. | | Single‑employer dependency | No employment data supplied; reliance on a dominant local employer would increase exposure if that employer contracts. | | Supply pipeline | No information on upcoming housing supply; a surge in new builds could pressure prices and yields. | | Rate sensitivity | Rising interest rates would increase borrowing costs and could dampen buyer demand, especially after an 8 % recent price rise. |

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## 8. The Play - Entry range: Target purchases around the median house price of $810,000 (or slightly below to capture a discount). - Minimum yield to target: 3.9 % gross (the current suburb average). - Watch signals: - Confirmation of the 13.5 % three‑year growth forecast (e.g., quarterly price reports). - Emerging vacancy or demand data from local rental surveys. - Announcements of transport or employment projects in the Walloon region. - Central bank rate moves that could affect buyer affordability. - Recommended strategy: Acquire a median‑priced house, hold for at least three years to capture the forecasted capital growth, and rent long‑term to secure the 3.9 % yield while monitoring vacancy trends. Adjust the exit plan if vacancy spikes or if a significant supply influx is announced.