Jurien Bay WA Property Investment

## 1. Investment Verdict We recommend a "Hold" strategy for Jurien Bay, WA, with the single most important number justifying this being the 57.0/100 Investment Scorecard rating. This score indicates a moderate investment potential, suggesting that while there are some positive factors, there are also limitations that prevent us from recommending a "Buy" strategy.

## 2. Market Overview The median house price in Jurien Bay is $770,000, while the median unit price is $447,153. Over the past year, house prices have grown by 14.9%, which is a significant increase. However, the 5-year compound annual growth rate (CAGR) is only 0.4%/yr, indicating that this growth is not part of a long-term trend. The gross rental yield is 5.6%, which is relatively high compared to other suburbs. For buyers, the current market signals a potential opportunity to enter the market, but sellers may not have as much negotiating power due to the moderate owner-occupier rate of 71%. The lack of data on days on market makes it difficult to determine the current market speed, but the moderate rental demand and stable vacancy trend suggest a relatively balanced market.

## 3. Rental Market The vacancy rate in Jurien Bay is 3.0%, which is relatively low and indicates a moderate demand for rentals. The median weekly rent is $825/wk, resulting in a gross rental yield of 5.6%. This yield is attractive for investors, especially when compared to other suburbs like Esperance (3.5%) and Dongara (5.2%). The rental demand is rated as moderate, which suggests that investors can expect a relatively stable rental income stream. However, the unemployment rate of 4.9% is slightly higher than the national average, which may impact rental demand in the future.

## 4. Short-Term Rental Opportunity The median nightly rate for short-term rentals in Jurien Bay is $254/night. However, without occupancy rate data, it's difficult to estimate the potential revenue. Assuming an average occupancy rate of 50% (a conservative estimate), the estimated annual revenue would be around $45,000. Compared to the long-term rental yield of 5.6%, short-term rentals may offer a higher potential return, but the lack of data makes it challenging to determine the best strategy. Investors should carefully consider the costs and potential returns before deciding between long-term and short-term rentals.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Jurien Bay, which may limit the suburb's growth potential. The nearest transport link is the Renison Goldfields Corporation station, 43.3km away, which may not be convenient for commuters. The lack of infrastructure development and limited employment opportunities may restrict demand for properties in the area. However, the low supply pipeline, with price growth outpacing new supply, may support future price growth.

## 6. Bull Case If conditions hold or improve, the upside scenario for Jurien Bay is promising. With a 3-year growth forecast of 13.5%, investors can expect significant capital growth. If the suburb's infrastructure and employment opportunities improve, demand for properties may increase, driving up prices. For example, if the median house price grows by 13.5% per year for the next 3 years, it could reach around $1,030,000, representing a significant return on investment.

## 7. Risks There are several risks associated with investing in Jurien Bay. The distance from the CBD may limit long-term capital growth potential, as it may not be attractive to buyers who prioritize proximity to urban amenities. The supply pipeline is low, but if new developments are approved, it could increase supply and put downward pressure on prices. The unemployment rate of 4.9% is slightly higher than the national average, which may impact rental demand and property prices. Additionally, the lack of infrastructure development and limited employment opportunities may restrict demand for properties in the area.

## 8. The Play For investors considering Jurien Bay, we recommend an entry range of $700,000 to $850,000 for houses and $400,000 to $500,000 for units. The minimum yield to target is 5.0%, considering the moderate rental demand and stable vacancy trend. Investors should watch for signs of improving infrastructure and employment opportunities, as these could drive up demand and prices. The recommended strategy is to hold existing properties and monitor the market for potential buying opportunities. Investors should also consider the potential for short-term rentals, but carefully weigh the costs and potential returns before making a decision.

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