Malaga WA Property Investment

THE MARKET

Malaga recorded 2.3% annual price growth over the past 5 years — a $493,597 house bought in 2019 would be worth approximately $440,549 today. Properties are sitting on the market for 55 days (buyers have some room to negotiate).

- **Median house:** $493,597 | **Units:** $227,711 - **Gross yield:** 7.6% | **Net yield:** 6.1% - **Vacancy:** 2.1% (stable) | **Rental demand:** High - **5yr price growth:** 2.3%/yr | **3yr forecast:** 2.6%/yr - **Days on market:** 55 (worsening)

STR potential: $165/night at 66% occupancy = ~$39,748/yr gross. Long-term at $37,440/yr may be simpler with comparable returns.

BULL CASE

If Malaga maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $567,637 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **METRONET Morley-Ellenbrook Line - Ballajura Station** (under construction). Plus 2 more projects in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Malaga pull back 10-15% from $493,597, with vacancy rising to 3.8% and rental yields softening as tenants gain leverage.

WHAT TO DO

Malaga 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 7.6% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $444,237 – $542,957 - Minimum yield to target: 7.9% - Watch signal: vacancy dropping below 2% and days on market falling below 35

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