Eastwood VIC Property Investment

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## 2. Market Overview - Median house price: $633,000 - Median unit price: $397,121 - 1‑yr price growth: ‑3.6% (price fell) - 5‑yr CAGR: 3.2% / yr (steady long‑term rise) - 3‑yr growth forecast: 13.5% (projected upside) - Days on market: data not supplied

What it signals: The negative 1‑yr growth (‑3.6%) puts buyers in a stronger position today – properties are priced lower and sellers may need to be flexible. The 5‑yr CAGR of 3.2% and the 13.5% 3‑yr forecast suggest the market could rebound, giving sellers a future advantage.

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## 3. Rental Market - Median weekly rent: $550 / wk - Gross rental yield: 4.5% - Vacancy rate: data not supplied - Demand rating: data not supplied

Implication for investors: A 4.5% yield sits above the national residential average (≈3.5%‑4%). Combined with a $550 weekly rent, the cash‑flow outlook is solid, but the lack of vacancy and demand data means investors should verify local occupancy before committing.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: data not supplied - STR occupancy: data not supplied - Estimated annual STR revenue: data not supplied

LTR vs STR: With only the long‑term rental yield (4.5%) available, LTR appears the safer bet until reliable STR metrics are obtained.

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## 5. Infrastructure & Growth Drivers - Known projects: data not supplied - Transport links: data not supplied - Employment base: data not supplied

Current driver: The suburb’s modest price correction (‑3.6% YoY) and the 13.5% 3‑yr growth forecast imply that underlying fundamentals (e.g., affordability) are supporting demand, even though specific infrastructure details are missing.

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## 6. Bull Case Assume the 3‑yr forecast of 13.5% materialises for houses:

• Projected median house price in 3 years: $633,000 × (1 + 0.135) ≈ $718,000
• Potential price upside: ≈ $85,000 over three years (≈ 13.5% total).

If rental yields stay at 4.5% and rents rise in line with inflation (≈ 2‑3% / yr), investors could see both capital growth and modest rent increases.

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## 7. Risks | Risk | Data‑backed indicator | |------|-----------------------| | Price correction risk | 1‑yr growth is ‑3.6%, showing recent downward pressure. | | Vacancy uncertainty | Vacancy rate not supplied – could be higher than the national average (≈ 2‑3%). | | Supply pipeline | No data on new developments; a sudden influx of units could compress prices and yields. | | Interest‑rate sensitivity | Higher rates would increase borrowing costs and could deepen the current ‑3.6% price dip. |

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## 8. The Play - Entry price range: $600,000 – $660,000 (around the current median house price of $633,000). - Minimum yield target: ≥ 4.5% (the suburb’s current gross yield). - Watch signals: 1. Any change in the 1‑yr growth figure (moving from ‑3.6% toward positive). 2. Release of vacancy data for Eastwood. 3. Announcements of new housing or infrastructure projects. 4. Reserve‑bank interest‑rate movements. - Recommended strategy: Acquire at the lower end of the entry range, hold for 3‑5 years to capture the forecast 13.5% capital gain, and rely on the 4.5% rental yield for cash flow. Re‑assess if vacancy data emerges or if a supply surge is announced.