Wynnum West QLD Property Investment

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## 2. Market Overview - Median house price: $1,259,055 - Median unit price: $814,000 - 1‑year price growth: +8.2% - 5‑year CAGR: +3.2% per annum - Days on market: *Data not provided*

What it signals: - The 8.2% annual price rise and the 13.5% projected growth over the next three years show a market still in expansion mode. - Sellers can command premium prices, but the relatively modest 5‑year CAGR (3.2%) suggests the market is not overheated, leaving room for buyers to negotiate, especially if they can act quickly (once days‑on‑market data becomes available).

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## 3. Rental Market - Median weekly rent: $720 - Gross rental yield: 3.0% - Vacancy rate: *Data not provided* - Demand rating: *Data not provided*

Implication for investors: A 3.0% gross yield sits near the national average for capital‑city suburbs, offering a modest cash‑flow buffer. Without vacancy or demand data we cannot quantify rental risk, but the rent level relative to the median house price ($1,259,055 ÷ $720 wk ≈ 22.5 years) confirms the yield figure.

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## 4. Short‑Term Rental (STR) Opportunity - STR nightly rate: *Data not provided* - Occupancy rate: *Data not provided* - Estimated annual STR revenue: *Data not provided*

LTR vs STR: Because no STR metrics are supplied, we cannot calculate a reliable STR yield. Until such data is sourced, the safer route is Long‑Term Rental (LTR), which already delivers a 3.0% gross yield.

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

Current demand drivers: The strong 13.5% 3‑year growth forecast implies underlying demand—likely from population growth, amenity upgrades, or improved transport—but without specifics we cannot pinpoint the exact catalyst.

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

If rent growth outpaces price growth, yield could improve above 3.0%.

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## 7. Risks | Risk | Quantified aspect | Impact if realised | |------|-------------------|--------------------| | Vacancy risk | Vacancy rate not supplied; a rise above 4% would erode the 3.0% yield. | Lower cash flow, higher holding costs. | | Single‑employer dependency | No employer data; if a dominant local employer accounts for >30% of jobs and downsizes, demand could fall. | Potential price and rent pressure. | | Supply pipeline | No data on upcoming developments; a surge of new dwellings could increase vacancy and cap price growth. | Yield compression, slower capital appreciation. | | Interest‑rate sensitivity | Current gross yield 3.0% – a 1% rise in borrowing cost cuts net yield by roughly 0.8% after tax (assuming 30% tax). | Reduced investor returns, possible buyer pull‑back. |

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## 8. The Play - Entry price range: - Houses: $1.10 m – $1.30 m (10–15% below median to allow negotiation). - Units: $750 k – $850 k (similarly below median).

• Minimum yield target: ≥3.0% gross (to match the suburb’s average and cover financing costs).

• Watch signals:

• Recommended strategy:

*Conclusion:* With a solid 13.5% projected capital gain and a baseline 3.0% rental yield, Wynnum West presents a Buy case for investors focused on long‑term growth, provided they keep a close eye on vacancy, supply and interest‑rate dynamics.