McKellar ACT Property Investment

Mckellar has compounded at 3.2%/yr over 5 years — a house that cost $946,921 in 2021 is worth $1,108,440 today. Properties are sitting on market for 35 days (roughly balanced conditions). At the same growth rate, today's median reaches $1,297,510 by 2031.

• Median house: $1,108,440 | Units: $738,290
• Gross yield: 3.8% | Net yield: 2.2%
• 5yr price CAGR: 3.2%/yr | 3yr forecast: 13.5%/yr
• Population: 2,740 | Owner-occupier rate: 57% | Affluence: Very High

• Supply pipeline: Moderate — Strong population growth likely attracting new development approvals

• Vacancy: 2.0% (improving) | Rental demand: High
• Median weekly rent: $800/wk | Days on market: 35 (stable)
• Balanced market — vacancy manageable but monitor trend.

• Median nightly rate: $382/night | Occupancy: 52%
• Estimated annual STR gross: ~$72,526/yr
• vs long-term rent: $41,600/yr (+74% STR premium — factor in higher management costs)

• ACT Light Rail Stage 2A (Under Construction)
• ACT Light Rail Stage 2B (Woden) (Announced)
• Transport: Swinden Street station 6.1km away

If Mckellar maintains 3%+ annual growth and vacancy stays below 1.4%, median prices could reach $1,274,706 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Mckellar pull back 10-15% from $1,108,440, with vacancy rising to 3.6% and rental yields softening as tenants gain leverage.

• No significant risk factors identified for this suburb

• Jacka (ACT): $1,192,525 median, 3.3% yield, 7.4% 1yr growth
• Florey (ACT): $935,000 median, 3.7% yield, 16.4% 1yr growth
• Macquarie (ACT): $995,000 median, 3.4% yield, 0.6% 1yr growth

Mckellar 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 3.8% and prioritise properties with value-add potential. Consider timing entry around the current cooling phase of the market cycle.

• Entry range: $997,596 – $1,219,284
• Minimum gross yield to target: 4.5%
• 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.