Myrrhee VIC Property Investment

## 1. Investment Verdict We recommend a Hold strategy for Myrrhee, VIC, with the single most important number justifying this being the Investment Scorecard rating of 52.0/100. This score indicates a neutral outlook, suggesting that while there are some positive trends, there are also limitations to the suburb's growth potential.

## 2. Market Overview The median house price in Myrrhee, VIC, is $672,000, with a median unit price of $167,517. The market has experienced a 25.0% price growth over the past year, which is a significant increase. However, the 5-year compound annual growth rate (CAGR) is 5.0%/yr, indicating a more moderate long-term growth trend. With a gross rental yield of 1.6%, the market currently favors sellers, as the yield is relatively low compared to other suburbs. For example, Newborough (VIC) has a median house price of $500,000 and a yield of 4.8%, making it a more attractive option for investors seeking higher returns. The lack of data on days on market makes it difficult to determine the current market speed, but the moderate rental demand and stable vacancy trend suggest a relatively balanced market.

## 3. Rental Market The rental market in Myrrhee, VIC, has a vacancy rate of 3.0%, which is relatively stable. The median weekly rent is $200/wk, resulting in a gross rental yield of 1.6%. The demand rating is moderate, with an owner-occupier rate of 78%, indicating a strong presence of owner-occupiers in the suburb. For investors, this means that while the yield is relatively low, the stable vacancy rate and moderate demand suggest a relatively low-risk rental market. However, the low yield may not be attractive to all investors, especially when compared to other suburbs like Newborough (VIC) with a higher yield.

## 4. Short-Term Rental Opportunity The short-term rental (STR) market in Myrrhee, VIC, has a median nightly rate of $739/night, with an occupancy rate of 48%. This translates to an estimated annual revenue of $134,712 (assuming 365 days of occupancy at 48% rate). Compared to the long-term rental (LTR) market, the STR market may offer higher returns, but it also comes with higher management costs and risks. Given the moderate demand rating and stable vacancy trend, LTR may be a more stable option, but the potential for higher returns in the STR market makes it worth considering.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Myrrhee, VIC, which may limit the suburb's growth potential. The transport infrastructure is standard suburban access, which may not be attractive to commuters or businesses. The unemployment rate is 2.9%, which is relatively low, indicating a strong local economy. However, the lack of major projects and limited transport options may limit the suburb's ability to attract new businesses and residents, which could impact long-term growth.

## 6. Bull Case If conditions hold or improve, the upside scenario for Myrrhee, VIC, could be significant. With a 3-year growth forecast of 4.5%, the suburb could experience continued price growth, driven by its relatively low vacancy rate and moderate demand. If the suburb can attract new businesses and residents, the lack of major projects could be addressed, and the suburb's growth potential could increase. For example, if the suburb experiences a 10% increase in population over the next 3 years, the demand for housing could increase, driving up prices and yields.

## 7. Risks There are several risks associated with investing in Myrrhee, VIC. The distance from the CBD may limit long-term capital growth potential, as it may not be attractive to commuters or businesses. The supply pipeline is moderate, with development activity consistent with long-term averages, which could lead to an oversupply of properties and negatively impact prices. The vacancy risk is relatively low, given the stable vacancy rate, but the single-employer dependency risk is unknown, as there is no data on the local employment base. The rate sensitivity risk is also unknown, as there is no data on the suburb's interest rate sensitivity.

## 8. The Play For investors looking to enter the Myrrhee, VIC, market, we recommend an entry range of $600,000 to $700,000 for houses and $150,000 to $200,000 for units. The minimum yield to target is 1.8% for houses and 2.0% for units. Watch signals include changes in the vacancy rate, rental demand, and population growth. The recommended strategy is to hold existing properties and monitor the market for signs of improvement or deterioration. Investors should also consider the potential for short-term rental opportunities and the risks associated with distance from the CBD and supply pipeline.

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