Wallumbilla QLD Property Investment

## 2. Market Overview The median house price in Wallumbilla is approximately $232,593, pending peer validation. The gross rental yield is 4.5%, and the median weekly rent is $200/wk. The 5-year compound annual growth rate (CAGR) is -0.5%/yr, indicating a decline in property values over the past five years. However, the 3-year growth forecast is 13.5%, suggesting a potential recovery in the market. With a population of 331 and an owner-occupier rate of 76%, the market is relatively small and stable. The days on market are not available, but the vacancy rate of 3.0% suggests that buyers and sellers are relatively balanced in the market.

## 3. Rental Market The rental market in Wallumbilla is characterized by a moderate demand rating, with a vacancy rate of 3.0% and a median weekly rent of $200/wk. The gross rental yield is 4.5%, which is relatively attractive for investors. The unemployment rate is low at 0.9%, which suggests a stable employment base and a low risk of vacancy. Overall, the rental market in Wallumbilla appears to be stable, with a moderate demand and relatively attractive yields.

## 4. Short-Term Rental Opportunity The short-term rental (STR) market in Wallumbilla has a median nightly rate of $673/night, with an occupancy rate of 44%. This translates to an estimated annual revenue of around $134,000 (assuming 365 nights per year and 44% occupancy). Compared to the long-term rental (LTR) market, the STR market appears to offer higher revenue potential, but also higher management costs and risks. However, with a relatively low occupancy rate, the STR market may not be the most attractive option for investors.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Wallumbilla, and the nearest transport link is the Yuleba station, 19.9km away. The lack of major infrastructure projects and the distance from the CBD may limit long-term capital growth potential. However, the low supply pipeline, with price growth outpacing new supply, may support property values in the short term.

## 6. Bull Case If the market conditions hold or improve, the upside scenario for Wallumbilla could be significant. With a 3-year growth forecast of 13.5%, property values could increase by around $31,000 (13.5% of $232,593) over the next three years. This could lead to a total return of around 17.5% per annum (13.5% capital growth + 4.5% rental yield), making Wallumbilla an attractive investment opportunity.

## 7. Risks There are several risks associated with investing in Wallumbilla. The distance from the CBD may limit long-term capital growth potential, and the low population and owner-occupier rate may make it difficult to find tenants or buyers. The vacancy rate of 3.0% is relatively low, but the rental demand is only moderate, which could lead to vacancy risks if the market deteriorates. Additionally, the supply pipeline is low, but if new developments are approved, it could lead to an oversupply of properties and downward pressure on prices.

## 8. The Play Based on the analysis, the recommended strategy for Wallumbilla is to hold existing investments or enter the market with caution. The entry range for investors could be around $220,000 to $250,000, with a minimum yield target of 4.5%. Investors should watch for signals such as changes in the vacancy rate, rental yields, and population growth, which could indicate a shift in the market. It is essential to conduct thorough research and due diligence before making any investment decisions.

Regarding climate risk, the flood risk is low, according to the QLD elevation-based flood proxy. However, the bushfire risk is not on record for this suburb in the state planning overlay. It is essential to order an independent Bushfire Attack Level (BAL) assessment before committing to any investment.

The heritage status is not on record, and it is crucial to confirm with the council duty planner or obtain a Section 10.7 (NSW) or equivalent certificate to determine the heritage status of the property.

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