Caulfield North VIC Property Investment

SUBURB INVESTMENT BRIEF — Caulfield North, VIC 3161 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 60/100 — Hold

Caulfield North rates as "Hold" due to weak growth indicators, tight rental market (1.0% vacancy).

Caulfield North sits in a trough phase of the property cycle with an overall investment score of 60 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the VIC market.

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MARKET POSITION

Median house price: $2,400,000 Median unit price: $683,989 Median weekly rent: $695/week Days on market: 52 days (worsening)

Caulfield North commands a premium position in the VIC property landscape. Properties are spending an average of 52 days on market, pointing to softer demand conditions.

Comparable suburbs: - Aberfeldie (VIC): Median $1,900,000, yield 1.6%, 1yr growth -6.6% - Albert Park (VIC): Median $2,400,000, yield 2.1%, 1yr growth 5.4% - Alphington (VIC): Median $2,100,000, yield 2.1%, 1yr growth 0.5%

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RENTAL MARKET

Gross rental yield: 1.5% Net rental yield: 0.0% Vacancy rate: 1.0% (worsening) Rental demand: Very High

The rental market in Caulfield North is characterised by very high demand with a vacancy rate of 1.0%, which is well below the national average of approximately 2.5%. Vacancy is trending worsening, warranting careful monitoring.

Short-term rental data indicates a median nightly rate of $175 with an estimated occupancy of 66%. This translates to an estimated annual STR revenue of $42,158 before expenses. This represents a 17% premium over estimated long-term rental income of $36,140/year, though STR comes with higher management costs and regulatory risk.

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GROWTH OUTLOOK

Population growth (5yr): 0.7% Price CAGR (5yr): -3.0% Capital growth (3yr forecast): -3.3% Supply pipeline: Moderate

Development activity consistent with long-term averages

Infrastructure & transport: - No major infrastructure projects identified. Transport: Well-connected inner-city location

If Caulfield North maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $2,760,000 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (0.7% growth, 1.0% vacancy, 1.5% yield), Caulfield North offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Trough Vacancy risk: Low

Key risks: - Negative price growth suggests a softening market - Premium price point limits buyer pool and increases interest rate sensitivity

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $12,774/month - At 8%: $14,088/month - At 9%: $15,449/month

A market correction or interest rate shock could see prices in Caulfield North pull back 10-15% from $2,400,000, with vacancy rising to 1.8% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Very High Safety score: 6.7/10 Walkability: 80/100 Owner-occupied: 35%

Schools: - Caulfield North Public School (primary): Rating 10.0/10 - Caulfield North East Public School (primary): Rating 9.5/10 - Caulfield North West Public School (primary): Rating 9.0/10 - Caulfield North High School (secondary): Rating 10.0/10

Caulfield North is a highly sought-after residential area with good safety ratings and strong walkability. The 35% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — HOLD

Caulfield North offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough phase with low vacancy risk.

Conditions: Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

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KEY ACTION ITEMS

1. Shortlist properties in the $2,160,000 - 2,640,000 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with Caulfield North market expertise for off-market opportunities

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