Airport West VIC Property Investment

THE MARKET

Airport West recorded 5.8% annual price growth over the past 5 years — a $1,000,000 house bought in 2019 would be worth approximately $754,348 today. Properties are sitting on the market for 42 days (roughly balanced conditions).

- **Median house:** $1,000,000 | **Units:** $677,917 - **Gross yield:** 3.1% | **Net yield:** 1.6% - **Vacancy:** 1.8% (improving) | **Rental demand:** High - **5yr price growth:** 5.8%/yr | **3yr forecast:** 6.6%/yr - **Days on market:** 42 (stable)

STR potential: $175/night at 66% occupancy = ~$42,158/yr gross. That's a **35% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Airport West maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,150,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Airport West pull back 10-15% from $1,000,000, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

WHAT TO DO

Airport West presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.1% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $900,000 – $1,100,000 - Minimum yield to target: 4.5% - Watch signal: vacancy staying below 2% and days on market falling below 35

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