Clayton VIC Property Investment

Clayton has compounded at 5.4%/yr over 5 years — a house that cost $999,402 in 2021 is worth $1,300,000 today. Properties are sitting on market for 32 days (roughly balanced conditions). At the same growth rate, today's median reaches $1,691,011 by 2031.

• Median house: $1,300,000 | Units: $845,500
• Gross yield: 2.6% | Net yield: 1.1%
• 5yr price CAGR: 5.4%/yr | 3yr forecast: 6.2%/yr
• Population: 18,988 | Owner-occupier rate: 37% | Affluence: High

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

• Vacancy: 2.2% (improving) | Rental demand: High
• Median weekly rent: $650/wk | Days on market: 32 (stable)
• Balanced market — vacancy manageable but monitor trend.

• Median nightly rate: $411/night | Occupancy: 48%
• Estimated annual STR gross: ~$71,953/yr
• vs long-term rent: $33,800/yr (+113% STR premium — factor in higher management costs)

• Suburban Rail Loop East (Melbourne) (Under Construction)
• Angliss Hospital Expansion (Under Delivery)
• Suburban Rail Loop East (approved)
• Transport: Standard suburban transport access

If Clayton maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $1,495,000 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Clayton pull back 10-15% from $1,300,000, with vacancy rising to 4.0% and rental yields softening as tenants gain leverage.

• No significant risk factors identified for this suburb

• Springvale (VIC): $966,000 median, 3.2% yield, 9.1% 1yr growth
• Lake Gardens (VIC): $910,973 median, 2.8% yield, -4.7% 1yr growth
• Bangholme (VIC): $992,000 median, 1.7% yield, 5.8% 1yr growth

Clayton offers balanced fundamentals but does not present an urgent buying signal. The market is in a stable phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

• Entry range: $1,170,000 – $1,430,000
• 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.