Mallacoota Short-Term Rental (Airbnb) Market
Mallacoota VIC Investment Analysis
BUY
— vacancy at 1.8% and $2,100/wk rent puts this in the top tier of VIC yield suburbs.
THE MARKET
Mallacoota has compounded at 10.4%/yr over 5 years — a house that cost $344,511 in 2021 is worth $565,000 today. Properties are sitting on market for 131 days (buyers have negotiating room). At the same growth rate, today's median reaches $926,603 by 2031.
- **Median house:** $565,000 | **Units:** $153,044 - **Gross yield:** 19.3% | **Net yield:** 17.8% - **5yr price CAGR:** 10.4%/yr | **3yr forecast:** 11.7%/yr - **Population:** 6,900 | **Owner-occupier rate:** 32% | **Affluence:** Average
- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- **Vacancy:** 1.8% (improving) | **Rental demand:** High - **Median weekly rent:** $2,100/wk | **Days on market:** 131 (worsening) - Landlord market — rents likely to keep rising.
SHORT-TERM RENTAL
- **Median nightly rate:** $175/night | **Occupancy:** 66% - **Estimated annual STR gross:** ~$42,158/yr - **vs long-term rent:** $109,200/yr (comparable — LTR offers simpler management)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Mallacoota maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $649,750 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Mallacoota pull back 10-15% from $565,000, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.
KEY RISKS
- No significant risk factors identified for this suburb
COMPARABLE MARKETS
- **Eumemmerring** (VIC): $645,000 median, 0.0% yield, 0.0% 1yr growth - **Eureka** (VIC): $525,000 median, 0.0% yield, 0.0% 1yr growth - **Euroa** (VIC): $507,500 median, 0.0% yield, 0.0% 1yr growth
THE PLAY
Mallacoota 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 19.3% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.
- Entry range: $508,500 – $621,500 - Minimum gross yield to target: 19.6% - Watch signal: vacancy staying 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.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.