Bellfield VIC Property Investment

## 1. Investment Verdict We recommend a Hold strategy for Bellfield, VIC, with the single most important number justifying this decision being the Investment Scorecard rating of 54.0/100. This score indicates a neutral outlook, suggesting that while there are some positive factors, there are also areas of concern that prevent us from recommending a Buy.

## 2. Market Overview The median house price in Bellfield ranges from $991,000 to $1,100,000, with sources disagreeing by more than 10%. The median unit price is $792,112. The market has experienced a 3.2% price growth over the past year and a 6.9% compound annual growth rate (CAGR) over the past five years. The gross rental yield is 3.1%, and the median weekly rent is $598. With a 3-year growth forecast of 12.7%, the market signals moderate growth potential for buyers. However, the lack of data on days on market makes it challenging to determine the current market dynamics. For sellers, the stable vacancy trend and moderate rental demand suggest a relatively balanced market.

## 3. Rental Market The rental market in Bellfield has a vacancy rate of 2.8%, indicating a moderate level of demand. The median weekly rent is $598, and the gross rental yield is 3.1%. The rental demand is classified as moderate, with an owner-occupier rate of 50%. The unemployment rate in the area is 6.6%, which may impact the rental market. For investors, the moderate rental demand and stable vacancy trend suggest a relatively stable rental income stream.

## 4. Short-Term Rental Opportunity The short-term rental market in Bellfield has a median nightly rate of $414 and an occupancy rate of 48%. This translates to an estimated annual revenue of $76,176 (assuming 365 nights per year and 48% occupancy). Compared to the long-term rental market, the short-term rental market may offer higher yields, but it also comes with higher management costs and more uncertainty. In this case, the long-term rental market may be a more stable option, given the moderate rental demand and stable vacancy trend.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Bellfield, which may limit the suburb's growth potential. The transport options are limited, with the nearest station, Wendouree, 7.3km away. The lack of infrastructure development and limited transport options may impact the suburb's attractiveness to buyers and renters. However, the low supply pipeline, with price growth outpacing new supply, may support future price growth.

## 6. Bull Case If conditions hold or improve, the upside scenario for Bellfield is a 12.7% growth over the next three years, driven by the low supply pipeline and moderate rental demand. With a median house price range of $991,000 to $1,100,000, this growth could result in significant capital gains for investors. Additionally, if the suburb experiences an increase in infrastructure development and transport options, it may become more attractive to buyers and renters, supporting further price growth.

## 7. Risks There are several risks associated with investing in Bellfield. The distance from the CBD may limit long-term capital growth potential, with the nearest station 7.3km away. The unemployment rate of 6.6% may also impact the rental market, with a higher risk of vacancy and reduced rental income. The low supply pipeline may also pose a risk, as it may lead to increased competition among buyers and renters, driving up prices and reducing yields. Furthermore, the flood risk is classified as LOW, and the bushfire risk is also classified as LOW, according to the state planning portal overlay.

## 8. The Play For investors looking to enter the Bellfield market, we recommend targeting properties with a minimum yield of 3.5% to mitigate the risks associated with the suburb. The entry range for houses is between $991,000 and $1,100,000, while the entry range for units is $792,112. Investors should watch for signals of improving infrastructure development and transport options, as well as changes in the supply pipeline and rental demand. A Hold strategy is recommended, given the neutral Investment Scorecard rating and the risks associated with the suburb.

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