Applecross WA Property Investment

THE MARKET

Applecross has compounded at 9.1%/yr over 5 years — a house that cost $1,682,091 in 2021 is worth $2,600,000 today. Properties are sitting on market for 22 days (sellers have the leverage). At the same growth rate, today's median reaches $4,018,807 by 2031.

- **Median house:** $2,600,000 | **Units:** $346,947 - **Gross yield:** 2.1% | **Net yield:** 0.6% - **5yr price CAGR:** 9.1%/yr | **3yr forecast:** 10.3%/yr - **Population:** 23,436 | **Owner-occupier rate:** 34% | **Affluence:** Very High

- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

- **Vacancy:** 2.4% (improving) | **Rental demand:** High - **Median weekly rent:** $1,050/wk | **Days on market:** 22 (improving) - Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

- **Median nightly rate:** $165/night | **Occupancy:** 66% - **Estimated annual STR gross:** ~$39,748/yr - **vs long-term rent:** $54,600/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If Applecross maintains 3%+ annual growth and vacancy stays below 1.7%, median prices could reach $2,990,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Applecross pull back 10-15% from $2,600,000, with vacancy rising to 4.3% and rental yields softening as tenants gain leverage.

KEY RISKS

- Premium price point limits buyer pool and increases interest rate sensitivity

COMPARABLE MARKETS

- **Attadale** (WA): $1,900,000 median, 3.0% yield, 5.6% 1yr growth - **Churchlands** (WA): $2,200,000 median, 3.2% yield, 13.5% 1yr growth - **Claremont** (WA): $2,200,000 median, 3.0% yield, 16.1% 1yr growth

THE PLAY

Applecross 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 2.1% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $2,340,000 – $2,860,000 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market holding under 35

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