Cottesloe Short-Term Rental (Airbnb) Market
Cottesloe WA Investment Analysis
HOLD
— 2.5% gross yield on a $3,100,000 median.
THE MARKET
Median house price in Cottesloe sits at $3,100,000 with 20 days on market and a 0.7% vacancy rate. This is a tight rental market right now.
- **Median house:** $3,100,000 | **Units:** $1,515,000 - **Gross yield:** 2.5% | **Net yield:** 1.0% - **Vacancy:** 0.7% (worsening) | **Rental demand:** Very High - **5yr price growth:** -8.6%/yr | **3yr forecast:** -9.7%/yr - **Days on market:** 20 (improving)
STR potential: $290/night at 58% occupancy = ~$61,393/yr gross. Long-term at $78,000/yr may be simpler with comparable returns.
BULL CASE
If Cottesloe maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $3,565,000 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Cottesloe pull back 10-15% from $3,100,000, with vacancy rising to 1.3% and rental yields softening as tenants gain leverage.
WHAT TO DO
Cottesloe offers balanced fundamentals but does not present an urgent buying signal. The market is in a trough phase with low vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.
- Entry range: $2,790,000 – $3,410,000 - Minimum yield to target: 4.5% - Watch signal: vacancy staying 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.
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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.