Flemington VIC Property Investment

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## 2. Market Overview - Median house price: $1,060,000 - Median unit price: $499,500 - 1‑year price growth: +2.3 % - 5‑year CAGR: +4.4 % per year - 3‑year growth forecast: +0.5 %

*Days on market* is not supplied, so we cannot comment on how quickly properties are selling.

Signal: Price growth is modest but positive. A 2.3 % rise over the past year and a 4.4 % five‑year CAGR suggest a stable, low‑volatility market. Buyers can expect limited upside in the short term, while sellers face a market that favours steady demand rather than a bidding war.

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## 3. Rental Market - Median weekly rent: $650 / wk - Gross rental yield: 3.2 %

*Vacancy rate* and *demand rating* are not provided, so we cannot quantify rental tightness.

Implication: The 3.2 % yield is average for inner‑west Melbourne. Without vacancy data, investors should assume a neutral rental environment and monitor any future vacancy reports before committing additional capital.

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## 4. Short‑Term Rental (STR) Opportunity No STR data (nightly rate, occupancy, or estimated annual revenue) are supplied.

Conclusion: With no evidence of a strong STR market, long‑term rental (LTR) remains the safer choice for Flemington at this time.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or major employers.

Result: We cannot identify any concrete demand catalysts or constraints beyond the suburb’s existing proximity to the CBD (within 5 km, which is a positive attribute).

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## 6. Bull Case If the current growth trajectory holds and rent growth picks up, the upside could look like this:

The bull case assumes no major supply shock and that rent growth outpaces price growth, lifting yields into the 3.5‑4 % band.

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## 7. Risks | Risk | Detail (with numbers where available) | |------|----------------------------------------| | Vacancy risk | No vacancy data – a rise in vacancies would push yields lower than the current 3.2 %. | | Single‑employer dependency | No employment‑base data – if the suburb relies heavily on a few large employers, any downsizing could affect demand. | | Supply pipeline | No information on upcoming developments – a sudden influx of new units could increase competition and depress rents. | | Rate sensitivity | With yields at only 3.2 %, any increase in interest rates would tighten cash flow for investors holding at current price levels. |

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## 8. The Play - Entry range: - Units: around $499,500 (median) - Houses: around $1,060,000 (median)

• Minimum yield target: Aim for ≥ 3.5 % gross yield to provide a buffer against rate hikes and potential vacancy spikes.

• Watch signals:

• Recommended strategy:
• - Current owners: Hold and monitor the above signals. Consider minor renovations that could lift rent above $650 / wk and push yield toward the 3.5 % target.
• - New investors: Wait for either a price dip (bringing the entry price below median) or evidence of rent growth that lifts yields. If both appear, a selective purchase of a unit (lower price, easier cash‑flow management) could be justified.