Dwellingup WA Property Investment

THE MARKET

Dwellingup has compounded at 1.6%/yr over 5 years — a house that cost $539,441 in 2021 is worth $584,000 today. Properties are sitting on market for 30 days (roughly balanced conditions). At the same growth rate, today's median reaches $632,239 by 2031.

- **Median house:** $584,000 | **Units:** $0 - **Gross yield:** 2.4% | **Net yield:** 0.9% - **5yr price CAGR:** 1.6%/yr | **3yr forecast:** 1.8%/yr - **Population:** 654 | **Owner-occupier rate:** 50% | **Affluence:** Average

- **Supply pipeline:** Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

- **Vacancy:** 3.0% (stable) | **Rental demand:** Moderate - **Median weekly rent:** $270/wk | **Days on market:** 30 (stable) - Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

- **Median nightly rate:** $228/night | **Occupancy:** 23% - **Estimated annual STR gross:** ~$19,308/yr - **vs long-term rent:** $14,040/yr (+38% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Standard suburban transport access

BULL CASE

If Dwellingup maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $671,600 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Dwellingup pull back 10-15% from $584,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

- No significant risk factors identified for this suburb

COMPARABLE MARKETS

- **Alkimos** (WA): $755,000 median, 4.8% yield, 12.7% 1yr growth - **Allanson** (WA): $556,000 median, 2.3% yield, 0.0% 1yr growth - **Armadale** (WA): $610,000 median, 5.1% yield, 13.0% 1yr growth

THE PLAY

Dwellingup carries elevated risk that outweighs potential returns at current levels. A growth market combined with moderate vacancy risk warrants caution. Avoid new acquisitions unless significant discount to median pricing is achievable. Re-evaluate if vacancy falls below 2.5% or annual price growth exceeds 3%.

- Entry range: $525,600 – $642,400 - 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.