Roxburgh Park VIC Property Investment

## 1. Investment Verdict Based on the data, the investment verdict for Roxburgh Park, VIC is Buy, with the single most important number justifying this decision 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 Roxburgh Park is reported as $749,647 by a single source, OnTheHouse, which has not been peer-validated. The median unit price is $536,959. The market has seen a 1-year price growth of 9.8% and a 5-year compound annual growth rate (CAGR) of 5.1%. This growth trend suggests a stable and improving market. However, the days on market are not available, which would have provided further insight into the current market dynamics. For buyers, the high rental demand and relatively low vacancy rate of 2.2% may indicate a competitive market, while for sellers, the 9.8% 1-year price growth could signal an opportune time to sell.

## 3. Rental Market The rental market in Roxburgh Park is characterized by a median weekly rent of $570, a gross rental yield of 4.0%, and a vacancy rate of 2.2%. The rental demand is rated as high, which, combined with the low vacancy rate, suggests a strong rental market. This could be attractive for investors looking for regular rental income. The high owner-occupier rate of 71% also indicates a stable community, which can be beneficial for long-term rentals.

## 4. Short-Term Rental Opportunity Unfortunately, the data does not provide specific information on the short-term rental (STR) market in Roxburgh Park, including the median nightly rate and occupancy rate. Without this data, it's challenging to assess the potential of STR versus long-term rentals (LTR) in the area. Typically, areas with high demand and limited supply can support both STR and LTR strategies, but the choice between them depends on the specific market conditions and the investor's goals.

## 5. Infrastructure & Growth Drivers Roxburgh Park benefits from standard suburban transport access and has been announced as part of the Melbourne Airport Rail (SRL Airport) project. This infrastructure development could significantly enhance the suburb's connectivity and potentially drive growth by making it more attractive to both residents and businesses. The moderate supply pipeline, driven by strong population growth, may lead to new development approvals, which could impact the market dynamics in the future.

## 6. Bull Case If market conditions hold or improve, with the 3-year growth forecast of 13.5% materializing, Roxburgh Park could experience significant capital appreciation. This, combined with the high rental demand and relatively stable vacancy rate, could make it an attractive investment opportunity. The announced infrastructure projects, particularly the Melbourne Airport Rail, could further enhance the suburb's appeal, potentially leading to higher demand and, consequently, higher prices.

## 7. Risks The specific risks associated with investing in Roxburgh Park are relatively low, with no significant risk factors identified. The unemployment rate of 7.8% is a consideration, as it is higher than some other areas, which could potentially affect rental income stability and property prices. However, the moderate supply pipeline, while a risk in terms of potential oversupply, is also a response to strong population growth, indicating underlying demand for housing in the area. The flood risk and bushfire risk are both classified as LOW according to the state planning portal overlay, which reduces these specific environmental risks.

## 8. The Play For investors considering Roxburgh Park, the entry range would be around the median prices quoted, with houses potentially entering the market at around $749,647 (keeping in mind this is single-source data) and units at $536,959. Investors should target a minimum gross yield of 4.0% to ensure a reasonable return on investment. Watch signals include changes in the vacancy rate, which could indicate shifts in rental demand, and updates on the Melbourne Airport Rail project, which could impact growth prospects. The recommended strategy would be to hold for the medium term, aiming to capitalize on the forecasted growth, while also considering the potential for rental income.

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