Glen Iris VIC Property Investment

THE MARKET

Glen Iris has compounded at 4.7%/yr over 5 years — a house that cost $1,402,850 in 2021 is worth $1,765,000 today. Properties are sitting on market for 32 days (roughly balanced conditions). At the same growth rate, today's median reaches $2,220,640 by 2031.

- **Median house:** $1,765,000 | **Units:** $624,032 - **Gross yield:** 2.6% | **Net yield:** 1.1% - **5yr price CAGR:** 4.7%/yr | **3yr forecast:** 5.2%/yr - **Population:** 26,131 | **Owner-occupier rate:** 70% | **Affluence:** Very High

- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

- **Vacancy:** 2.2% (improving) | **Rental demand:** High - **Median weekly rent:** $900/wk | **Days on market:** 32 (stable) - Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

- **Median nightly rate:** $229/night | **Occupancy:** 59% - **Estimated annual STR gross:** ~$49,061/yr - **vs long-term rent:** $46,800/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

- **Suburban Rail Loop East (Melbourne)** (Under Construction) - **North East Link (Melbourne)** (Under Construction) - **Metro Tunnel (Melbourne)** (Under Construction) - **West Gate Tunnel (Melbourne)** (Under Construction) - **Transport:** Well-connected inner-city location

BULL CASE

If Glen Iris maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $2,029,750 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Glen Iris pull back 10-15% from $1,765,000, with vacancy rising to 4.0% and rental yields softening as tenants gain leverage.

KEY RISKS

- No significant risk factors identified for this suburb

COMPARABLE MARKETS

- **Abbotsford** (VIC): $1,330,000 median, 2.8% yield, 5.6% 1yr growth - **Aireys Inlet** (VIC): $1,280,000 median, 1.4% yield, -11.7% 1yr growth - **Alphington** (VIC): $1,603,500 median, 2.8% yield, 14.5% 1yr growth

THE PLAY

Glen Iris offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with moderate vacancy risk. 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%.

- Entry range: $1,588,500 – $1,941,500 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market holding under 35

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