Keilor Lodge VIC Property Investment

## 1. Investment Verdict We recommend a Hold strategy for Keilor Lodge, VIC, with the single most important number being the 5-year Compound Annual Growth Rate (CAGR) of 5.1%/yr, indicating a stable and moderate growth trend.

## 2. Market Overview The median house price in Keilor Lodge is $1,095,647, while the median unit price is $720,622. With a gross rental yield of 3.2% and a median weekly rent of $680/wk, the market signals a relatively stable rental income for investors. The owner-occupier rate is high at 84%, indicating a strong demand for housing in the area. Although the 1-year price growth is not available, the 5-year CAGR of 5.1%/yr suggests a moderate growth trend. The market cycle is currently cooling, which may lead to a more buyer-friendly market.

## 3. Rental Market The vacancy rate in Keilor Lodge is 2.2%, indicating a relatively low vacancy risk. The rental demand is high, with a median weekly rent of $680/wk and a gross rental yield of 3.2%. This suggests that investors can expect a stable rental income. The unemployment rate is 5.4%, which is relatively low, further supporting the high rental demand.

## 4. Short-Term Rental Opportunity Unfortunately, the data for short-term rental opportunities in Keilor Lodge is not available. Therefore, we cannot estimate the nightly rate, occupancy, or estimated annual revenue. As a result, we cannot determine whether long-term rental (LTR) or short-term rental (STR) is better in this area.

## 5. Infrastructure & Growth Drivers Keilor Lodge has standard suburban transport access, with announced and under-construction projects such as the Melbourne Airport Rail (SRL Airport) and the West Gate Tunnel (Melbourne). These infrastructure projects may drive growth and increase demand for housing in the area. The limited development pipeline, with supply not keeping up with price growth, may also contribute to future price increases.

## 6. Bull Case If the current market conditions hold or improve, the 3-year growth forecast of 13.5% suggests a potential upside scenario. With a low vacancy rate, high rental demand, and limited supply pipeline, Keilor Lodge may experience significant price growth. The announced infrastructure projects may also increase demand and drive prices up.

## 7. Risks The specific risks in Keilor Lodge are relatively low, with no significant risk factors identified. The vacancy risk is low, with a vacancy rate of 2.2%. The supply pipeline is also low, which may lead to price growth. The unemployment rate is 5.4%, which is relatively low and supports the high rental demand. The flood risk and bushfire risk are both classified as LOW, according to the state planning portal overlay.

## 8. The Play The entry range for Keilor Lodge is likely between $1,000,000 and $1,200,000 for houses, based on the median house price of $1,095,647. For units, the entry range may be between $600,000 and $800,000, based on the median unit price of $720,622. Investors should target a minimum yield of 3.2% to ensure a stable rental income. Watch signals include changes in the vacancy rate, rental demand, and infrastructure development. The recommended strategy is to hold existing properties and monitor the market for potential buying opportunities.

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