Mount Dandenong VIC Property Investment
Yarra Ranges · 3767 · Score: 65/100 · Buy
Mount Dandenong Short-Term Rental (Airbnb) Market
Mount Dandenong VIC Investment Brief
BUY — 2.6% gross yield on a $1,035,922 (pending peer validation) median.
THE MARKET
Mount Dandenong has compounded at 5.0%/yr over 5 years. Median sits in the $1,035,922 (pending peer validation) band today. Properties are sitting on market for 32 days (roughly balanced conditions).
- Median house: $1,035,922 (pending peer validation) | Units: $0
- Gross yield: 2.6% | Net yield: 1.1%
- 5yr price CAGR: 5.0%/yr | 3yr forecast: 4.5%/yr
- Population: 1,271 | Owner-occupier rate: 91% | Affluence: Very High
- Supply pipeline: Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- Vacancy: 2.2% (improving) | Rental demand: High
- Median weekly rent: $515/wk | Days on market: 32 (stable)
- Balanced market — vacancy manageable but monitor trend.
SHORT-TERM RENTAL
- Median nightly rate: $671/night | Occupancy: 48%
- Estimated annual STR gross: ~$117,570/yr
- vs long-term rent: $26,780/yr (+339% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- Angliss Hospital Expansion (Under Delivery)
- Transport: Standard suburban transport access
BULL CASE
If Mount Dandenong maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $1,191,310 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Mount Dandenong pull back 10-15% from $1,035,922, with vacancy rising to 4.0% and rental yields softening as tenants gain leverage.
KEY RISKS
- Bushfire risk: HIGH (planning_overlay) — confirm BAL rating and any bushfire overlay obligations for the property
COMPARABLE MARKETS
- Hazelwood North (VIC): $1,027,334 median, 1.1% yield, 14.9% 1yr growth
- Tanjil South (VIC): $932,309 median, 1.2% yield, 7.5% 1yr growth
- Hampton Park (VIC): $754,527 median, 3.8% yield, 5.3% 1yr growth
THE PLAY
Mount Dandenong 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 2.6% and prioritise properties with value-add potential. Consider timing entry around the current cooling phase of the market cycle.
- Entry range: $932,330 – $1,139,514
- 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.
Gentrification Index
Growth Forecast
high confidenceBasis: 5yr CAGR 5.0% + 10yr CAGR 6.7%
- +Low rental vacancy (2.2%) — constrained supply
- −High supply pipeline (3117 new approvals) — may cap price growth
Suburb Metric Thresholds
Macro Environment
Macro Indicators
Cash Rate
4.35%
▲ 0.25%Cash rate as at 2026-05-06 · Credit data 2026-04
Suburb Supply & Demand
Suburb Supply Pipeline — New Dwelling Approvals
547
2020
711
2021
643
2022
414
2023
802
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 3767
Decile 9 of 10 — Low disadvantage
Population
1,271
Education (IEO)
9/10
Econ. Resources (IER)
10/10
10-Year Investment Projection
Modelled on Mount Dandenong VIC data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $515/wk median rent for Mount Dandenong. Capital growth and rent increase are editable assumptions.
Schools
In your catchment
These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.
Nearby Suburbs
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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.