Gordon VIC Property Investment

## 1. Investment Verdict We rate Gordon, VIC as a Buy, with the single most important number justifying this verdict being the 3-year growth forecast of 13.5%. This indicates a strong potential for capital appreciation in the medium term.

## 2. Market Overview The median house price in Gordon, VIC is approximately $839,000, although this figure is pending peer validation and should be treated with caution. The median unit price is $199,462. With a gross rental yield of 2.1% and a median weekly rent of $340/wk, the rental market appears to be moderately strong. The owner-occupier rate of 89% suggests a stable community, which can be attractive to investors. However, the lack of data on days on market and 1-year price growth makes it challenging to fully assess the current market dynamics. The 5-year compound annual growth rate (CAGR) of 6.0% indicates a steady long-term growth trend.

## 3. Rental Market The rental market in Gordon, VIC is characterized by a vacancy rate of 2.5%, which is relatively low and indicates moderate demand for rentals. The median weekly rent is $340/wk, and the gross rental yield is 2.1%, which is moderate but not exceptionally high. The rental demand is rated as moderate, which suggests that investors can expect a steady stream of tenants, but may not experience extremely high rental growth. The low unemployment rate of 1.8% in the area contributes to the stability of the rental market.

## 4. Short-Term Rental Opportunity The short-term rental (STR) market in Gordon, VIC offers a median nightly rate of $596/night, with an occupancy rate of 48%. This translates to an estimated annual revenue of approximately $109,000 (assuming 48% occupancy and $596/night). However, considering the moderate rental demand and the relatively low gross rental yield of 2.1% in the long-term rental market, it might be more challenging to achieve high occupancy rates consistently in the STR market. Therefore, long-term rentals might be a better option for investors seeking stable, predictable income.

## 5. Infrastructure & Growth Drivers Gordon, VIC has standard suburban transport access, which is a positive attribute for residents and investors alike. However, there are no major projects on file that could significantly drive growth or demand in the area. The supply pipeline is moderate, with strong population growth likely attracting new development approvals. This could potentially increase supply and impact prices and rental yields if not managed carefully. The employment base, with an unemployment rate of 1.8%, is a significant growth driver, indicating a strong and stable local economy.

## 6. Bull Case If conditions hold or improve, with the 3-year growth forecast of 13.5% materializing, Gordon, VIC could experience significant capital appreciation. This, combined with the moderate rental yield, could make for an attractive investment proposition. Assuming the median house price of approximately $839,000 grows at the forecasted rate, investors could see their property value increase by around $114,000 over the next three years, not accounting for any potential rental income.

## 7. Risks There are several risks associated with investing in Gordon, VIC. The bushfire risk is classified as HIGH, according to the state planning portal overlay. This means that properties in the area may be subject to elevated insurance premiums and may require specific bushfire mitigation measures, such as those outlined in the Bushfire Attack Level (BAL) rating. Investors should obtain a property-specific bushfire certificate before exchange to understand these requirements fully. Additionally, the distance from the CBD may limit long-term capital growth potential, as proximity to central business districts often correlates with higher demand and price growth. The supply pipeline, while moderate, could also impact the market if new developments increase supply beyond demand.

## 8. The Play For investors looking to enter the Gordon, VIC market, the entry range should be carefully considered, keeping in mind the approximate median house price of $839,000. A minimum yield to target would be around the current gross rental yield of 2.1%, but investors should aim to negotiate or seek properties that can offer higher rental returns. Watch signals include changes in the local employment rate, announcements of new infrastructure projects, and shifts in the supply pipeline. The recommended strategy is to seek stable, long-term rentals, given the moderate rental demand and the potential challenges in achieving high occupancy rates in the short-term rental market.

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