Maylands WA Property Investment

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## 2. Market Overview - Median house price: $1,210,000 - Median unit price: $751,000 - 1‑yr price growth: 21.5 % (strong upside) - 5‑yr CAGR: 0.8 % / yr (flat over the longer term) - 3‑yr growth forecast: 13.5 % (moderate future upside) - Days on market: *Data not provided*

What it signals: - The sharp 21.5 % jump in the past 12 months indicates strong buyer demand and a seller‑favourable market at present. - The modest 0.8 % long‑term CAGR suggests the recent surge may be cyclical rather than a sustained trend. - With a 13.5 % forecast over the next three years, the market still expects further appreciation, but at a slower pace. - Lack of days‑on‑market data prevents a precise read on how quickly properties are selling, but the price surge alone points to a competitive environment for buyers.

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## 3. Rental Market - Median weekly rent: $745 / wk - Gross rental yield: 3.2 % - Vacancy rate: *Data not provided* - Demand rating: *Data not provided*

Implication for investors: A 3.2 % gross yield sits below the 4‑5 % range many investors target for cash‑flow properties, indicating that capital growth (21.5 % last year) is the primary return driver. If vacancy is low (as is typical in inner‑west Perth), the modest yield can still be acceptable when paired with strong price appreciation.

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## 4. Short‑Term Rental (STR) Opportunity - STR nightly rate: *Data not provided* - STR occupancy: *Data not provided* - Estimated annual STR revenue: *Cannot be calculated*

LTR vs STR: Without STR metrics we cannot quantify the short‑term upside. Given the solid long‑term growth and the lack of STR data, the safer approach is to focus on Long‑Term Rental (LTR) until more evidence of STR demand emerges.

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## 5. Infrastructure & Growth Drivers - Known projects, transport, employment base: *Data not provided*

Current demand drivers: The suburb’s proximity to Perth’s CBD (within 5 km) is a built‑in advantage, supporting both owner‑occupier and rental demand. In the absence of specific project data, investors should monitor any announced transport upgrades or precinct renewals that could further boost desirability.

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## 6. Bull Case Assume the 3‑year forecast materialises and the 1‑yr momentum continues:

If rental demand stays strong and vacancy remains low, investors could capture both capital growth and a stable 3 %+ yield.

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## 7. Risks | Risk | Detail (with numbers where possible) | |------|--------------------------------------| | Yield pressure | Gross yield sits at 3.2 %; any rent stagnation while prices keep rising will compress cash flow. | | Interest‑rate sensitivity | With a 3.2 % yield, a 1 % rise in mortgage rates cuts net return by roughly 0.8 % (assuming 80 % loan‑to‑value). | | Vacancy uncertainty | Vacancy rate not disclosed; a rise above 3 % would further erode the thin yield. | | Supply pipeline | No data on upcoming dwellings; a surge in new units could lift vacancy and push yields lower. | | Data gaps | Absence of days‑on‑market, STR, and infrastructure information limits full risk assessment. |

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## 8. The Play - Entry range: - Units: $700k – $800k (around the $751k median) - Houses: $1.15m – $1.30m (around the $1.21m median)

• Minimum yield target: ≥3.5 % gross (to provide a buffer above the current 3.2 %).

• Watch signals:

• Recommended strategy:

*Conclusion:* Maylands offers a compelling capital‑growth story backed by a 21.5 % 1‑year price surge. The modest 3.2 % yield means investors should rely on price appreciation rather than cash flow, and they must monitor vacancy and interest‑rate dynamics closely. With disciplined entry pricing and a focus on long‑term hold, the suburb fits a Buy thesis.