Red Hill VIC Property Investment
Mornington Peninsula · 3937 · Score: 71/100 · Buy
Red Hill Short-Term Rental (Airbnb) Market
Red Hill VIC Investment Brief
BUY — 2.6% gross yield on a $1,673,077 (pending peer validation) median.
THE MARKET
Red Hill has compounded at 5.4%/yr over 5 years. Median sits in the $1,673,077 (pending peer validation) band today. Properties are sitting on market for 38 days (roughly balanced conditions).
- Median house: $1,673,077 (pending peer validation) | Units: $568,729
- Gross yield: 2.6% | Net yield: 1.1%
- 5yr price CAGR: 5.4%/yr | 3yr forecast: 4.9%/yr
- Population: 1,009 | Owner-occupier rate: 85% | Affluence: Very High
- Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- Vacancy: 2.3% (improving) | Rental demand: High
- Median weekly rent: $850/wk | Days on market: 38 (stable)
- Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record.
- Transport: Standard suburban transport access
BULL CASE
If Red Hill maintains 3%+ annual growth and vacancy stays below 1.6%, median prices could reach $1,924,039 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Red Hill pull back 10-15% from $1,673,077, with vacancy rising to 4.1% and rental yields softening as tenants gain leverage.
KEY RISKS
- Bushfire risk: HIGH (planning_overlay) — confirm BAL rating and any bushfire overlay obligations for the property
- - Distance from CBD may limit long-term capital growth potential
COMPARABLE MARKETS
- Mccrae (VIC): $1,200,000 median, 3.1% yield, 2.7% 1yr growth
- Somers (VIC): $1,500,000 median, 2.4% yield, -2.6% 1yr growth
- Whittlesea (VIC): $1,200,000 median, 2.6% yield, 3.2% 1yr growth
THE PLAY
Red Hill 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 2.6% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.
- Entry range: $1,505,769 – $1,840,385
- Minimum gross yield to target: 4.5%
- Watch signal: vacancy dropping 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.
Gentrification Index
Growth Forecast
high confidenceBasis: 5yr CAGR 5.4% + 10yr CAGR 6.0%
- +Above-average population growth (2.4%/yr)
- +Low rental vacancy (2.3%) — constrained supply
- −High supply pipeline (4684 new approvals) — may cap price growth
Suburb Metric Thresholds
Macro Environment
Macro Indicators
Cash Rate
4.35%
▲ 0.25%Cash rate as at 2026-05-06 · Credit data 2026-04
Suburb Supply & Demand
Suburb Supply Pipeline — New Dwelling Approvals
1,016
2020
992
2021
1,050
2022
986
2023
640
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 3937
Decile 10 of 10 — Low disadvantage
Population
1,717
Education (IEO)
10/10
Econ. Resources (IER)
10/10
10-Year Investment Projection
Modelled on Red Hill VIC data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $850/wk median rent for Red Hill. Capital growth and rent increase are editable assumptions.
Schools
In your catchment
These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.
Nearby Suburbs
Analyse a Property in Red Hill
Get instant STR rules, granny flat feasibility, rental yield, and full investment strategy comparison for any address in Red Hill.
Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.