Palmyra Short-Term Rental (Airbnb) Market
Palmyra WA Investment Analysis
BUY
— $1,100,000 median with 8.0%/yr growth over 5 years.
THE MARKET
Palmyra has compounded at 8.0%/yr over 5 years — a house that cost $748,642 in 2021 is worth $1,100,000 today. Properties are sitting on market for 8 days (sellers have the leverage). At the same growth rate, today's median reaches $1,616,261 by 2031.
- **Median house:** $1,100,000 | **Units:** $532,414 - **Gross yield:** 3.9% | **Net yield:** 2.4% - **5yr price CAGR:** 8.0%/yr | **3yr forecast:** 9.0%/yr - **Population:** 28,928 | **Owner-occupier rate:** 36% | **Affluence:** Very High
- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- **Vacancy:** 2.5% (stable) | **Rental demand:** Moderate - **Median weekly rent:** $820/wk | **Days on market:** 8 (improving) - Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- **Median nightly rate:** $165/night | **Occupancy:** 66% - **Estimated annual STR gross:** ~$39,748/yr - **vs long-term rent:** $42,640/yr (comparable — LTR offers simpler management)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Palmyra maintains 3%+ annual growth and vacancy stays below 1.8%, median prices could reach $1,265,000 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Palmyra pull back 10-15% from $1,100,000, with vacancy rising to 4.5% and rental yields softening as tenants gain leverage.
KEY RISKS
- No significant risk factors identified for this suburb
COMPARABLE MARKETS
- **Albany** (WA): $855,000 median, 3.6% yield, 17.1% 1yr growth - **Alexander Heights** (WA): $825,000 median, 4.7% yield, 13.2% 1yr growth - **Aubin Grove** (WA): $935,000 median, 4.1% yield, 20.0% 1yr growth
THE PLAY
Palmyra presents a compelling investment opportunity. The combination of solid fundamentals and moderate rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.9% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.
- Entry range: $990,000 – $1,210,000 - 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.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.