Fairfield VIC Property Investment

THE MARKET

Fairfield recorded 8.6% annual price growth over the past 5 years — a $1,800,000 house bought in 2019 would be worth approximately $1,191,580 today. Properties are sitting on the market for 37 days (roughly balanced conditions).

- **Median house:** $1,800,000 | **Units:** $677,233 - **Gross yield:** 1.9% | **Net yield:** 0.4% - **Vacancy:** 2.1% (improving) | **Rental demand:** High - **5yr price growth:** 8.6%/yr | **3yr forecast:** 9.6%/yr - **Days on market:** 37 (stable)

STR potential: $175/night at 66% occupancy = ~$42,158/yr gross. That's a **25% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Fairfield maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $2,070,000 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Darebin Road Signal & Road Works** (under construction). Plus 1 more project in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Fairfield pull back 10-15% from $1,800,000, with vacancy rising to 3.8% and rental yields softening as tenants gain leverage.

WHAT TO DO

Fairfield 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 1.9% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,620,000 – $1,980,000 - Minimum yield to target: 4.5% - Watch signal: vacancy dropping 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.