Koongamia WA Property Investment

---

## 2. Market Overview - Median house price: $650,000 - Median unit price: $625,617 - 1‑yr price growth: 22.0 % - 5‑yr CAGR: 2.8 % per year - 3‑yr growth forecast: 13.5 %

*Signal:* A 22 % jump in the past year shows strong recent seller momentum, but the longer‑term 2.8 % CAGR and a 13.5 % forecast indicate moderate, sustainable growth. With no days‑on‑market figure supplied, the price surge suggests buyers are still willing to pay a premium, while sellers can command solid returns.

---

## 3. Rental Market - Median weekly rent: $720 / wk - Gross rental yield: 5.8 %

*Data not supplied:* vacancy rate, demand rating.

*Interpretation:* A 5.8 % yield sits comfortably above the national average for similar suburbs, signalling a decent cash‑flow proposition for investors. Without vacancy data we cannot quantify rental risk, but the yield alone suggests the market is currently attractive.

---

## 4. Short‑Term Rental Opportunity *Data not supplied:* STR nightly rate, occupancy, estimated annual revenue.

*Conclusion:* With no STR metrics available, we cannot compare long‑term rental (LTR) versus short‑term rental (STR). The existing 5.8 % LTR yield remains the benchmark for decision‑making.

---

## 5. Infrastructure & Growth Drivers *Data not supplied:* known projects, transport upgrades, employment base, or other demand drivers.

*Implication:* In the absence of specific infrastructure information, the analysis must rely on price and rental fundamentals alone.

---

## 6. Bull Case If the 3‑yr forecast of 13.5 % capital growth materialises and the 5.8 % rental yield is maintained, an investor could achieve a combined return of ≈ 19.3 % per annum (13.5 % + 5.8 %). This scenario assumes stable occupancy and no major supply shock.

---

## 7. Risks | Risk | Quantified Concern (where available) | |------|--------------------------------------| | Vacancy risk | Vacancy rate not provided – must be monitored. | | Single‑employer dependency | Employment data not supplied – cannot assess concentration risk. | | Supply pipeline | No data on upcoming dwellings – new supply could pressure rents and yields. | | Rate sensitivity | Interest‑rate moves affect borrowing costs; with a 5.8 % yield, higher rates could compress net returns. |

---

## 8. The Play - Entry range: $625,617 (median unit) – $650,000 (median house) - Minimum yield target: 5.8 % gross (the current suburb benchmark) - Watch signals: emerging vacancy data, any announced housing supply, interest‑rate trends, and local employment announcements. - Recommended strategy: Hold existing positions and consider new purchases only if the price can be secured at or below the median unit level while the 5.8 % yield remains intact. This balances capital‑growth upside with a solid cash‑flow base.