Wilsonton Heights QLD Property Investment

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## 2. Market Overview - Median house price: $715,000 - Median unit price: $627,217

• 1‑year price growth: +20.2 %
• 5‑year CAGR: +3.0 % per annum
• 3‑year growth forecast: +13.5 %

*Interpretation* – The 20.2 % jump in the last 12 months shows strong recent price momentum, but the longer‑term 3 % CAGR signals modest underlying growth. With no data on days on market, we can infer that the market is currently balanced: sellers benefit from recent price spikes, while buyers can still target a 4 % yield, keeping demand steady.

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## 3. Rental Market - Median weekly rent: $550 / wk - Gross rental yield: 4.0 %

*Vacancy rate* – not supplied. *Demand rating* – not supplied.

*What this means* – A 4 % yield sits near the median for regional Queensland, indicating reasonable but not exceptional cash‑flow potential. Investors should monitor vacancy trends; any rise above the norm could erode that yield.

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## 4. Short‑Term Rental Opportunity All STR metrics are not provided (nightly rate, occupancy, annual revenue).

*Conclusion* – With no data to assess short‑term performance, long‑term rental (LTR) remains the default strategy for this suburb.

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## 5. Infrastructure & Growth Drivers No specific projects, transport upgrades, or employment‑base details are supplied.

*What drives demand* – The 13.5 % 3‑year growth forecast suggests market confidence, likely underpinned by broader regional growth rather than a single local catalyst.

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## 6. Bull Case Assuming the 13.5 % forecast materialises over the next three years:

• Projected median house price: $715,000 × 1.135 ≈ $811,000
• Potential capital gain: ≈ $96,000 per house

If rental yields hold at 4 %, the weekly rent of $550 would generate an annual gross income of $28,600, preserving the yield even as prices rise.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Price volatility | 20.2 % price rise in the past year could reverse if market cools, compressing yields. | | Yield sensitivity | A 0.5 % drop in yield (to 3.5 %) would require rent to fall to $481 / wk or price to rise to $770,000 – both plausible if vacancy climbs. | | Vacancy risk | Vacancy rate not disclosed; an increase above the regional average (≈5 %) would directly cut the 4 % yield. | | Supply pipeline | No data on new dwellings; a surge in construction could lift vacancy and pressure prices. | | Interest‑rate sensitivity | Higher rates raise borrowing costs, potentially dampening the 20.2 % recent price surge and tightening cash flow. |

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## 8. The Play - Entry price range: $680,000 – $750,000 (around the $715,000 median house price). - Minimum yield target: ≥ 4.0 % gross (to match the suburb’s baseline). - Watch signals: 1. Any published vacancy data moving above the regional norm. 2. Announcements of new housing developments or infrastructure projects. 3. Shifts in the Reserve Bank’s cash‑rate that could affect borrowing costs. - Recommended strategy: Acquire a property within the entry band, aim for a gross yield of at least 4 %, and hold for 3–5 years to capture the forecast 13.5 % capital appreciation. Re‑assess annually against vacancy and interest‑rate trends; pivot to a more defensive position if yields fall below the target.