Paddington QLD Property Investment

Paddington has compounded at 4.3%/yr over 5 years — a house that cost $1,764,492 in 2021 is worth $2,177,917 today. Properties are sitting on market for 25 days (sellers have the leverage). At the same growth rate, today's median reaches $2,688,208 by 2031.

• Median house: $2,177,917 | Units: $1,024,924
• Gross yield: 2.3% | Net yield: 0.8%
• 5yr price CAGR: 4.3%/yr | 3yr forecast: 13.5%/yr
• Population: 9,063 | Owner-occupier rate: 48% | Affluence: Very High

• Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

• Vacancy: 1.5% (improving) | Rental demand: High
• Median weekly rent: $950/wk | Days on market: 25 (stable)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $455/night | Occupancy: 44%
• Estimated annual STR gross: ~$73,033/yr
• vs long-term rent: $49,400/yr (+48% STR premium — factor in higher management costs)

• Brisbane 2032 Olympic Games Infrastructure (Announced)
• Cross River Rail (Brisbane) (Under Construction)
• Transport: Milton station 0.8km away

If Paddington maintains 3%+ annual growth and vacancy stays below 1.0%, median prices could reach $2,504,605 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Paddington pull back 10-15% from $2,177,917, with vacancy rising to 2.7% and rental yields softening as tenants gain leverage.

• Flood risk: HIGH (qld_arcgis) — order a flood certificate for the specific address before commit
• - Premium price point limits buyer pool and increases interest rate sensitivity

• Sheldon (QLD): $1,826,105 median, 1.8% yield, 10.9% 1yr growth
• Wishart (QLD): $1,618,366 median, 2.6% yield, 23.1% 1yr growth
• Chapel Hill (QLD): $1,785,066 median, 2.6% yield, 15.4% 1yr growth

Paddington 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 2.3% and prioritise properties with value-add potential. Consider timing entry around the current stable phase of the market cycle.

• Entry range: $1,960,125 – $2,395,709
• Minimum gross yield to target: 4.5%
• Watch signal: vacancy staying 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.