Willow Grove VIC Property Investment

Wellington · 3825 · Score: 47/100 · Caution

Median House Price
$1.05M
Rental Yield
1.1%
Vacancy Rate
2.8%
Median Weekly Rent
$215/wk
Median Unit Price
$399K
Population
654
Days on Market
42 days
Annual Growth
7.5%

Willow Grove Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$429.88/night
Occupancy Rate
48%
Est. Annual Revenue
$75K
AI Investment Analysis

Willow Grove VIC Investment Brief

CAUTION1.1% gross yield on a $1,052,710 (single source — OnTheHouse only, no peer to validate) median.

THE MARKET

Willow Grove has compounded at 3.2%/yr over 5 years. Median sits in the $1,052,710 (single source — OnTheHouse only, no peer to validate) band today. Properties are sitting on market for 42 days (roughly balanced conditions).

  • Median house: $1,052,710 (single source — OnTheHouse only, no peer to validate) | Units: $399,176
  • Gross yield: 1.1% | Net yield: -0.4%
  • 5yr price CAGR: 3.2%/yr | 3yr forecast: 13.5%/yr
  • Population: 654 | Owner-occupier rate: 69% | Affluence: Low
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 2.8% (stable) | Rental demand: Moderate
  • Median weekly rent: $215/wk | Days on market: 42 (stable)
  • Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

  • Median nightly rate: $430/night | Occupancy: 48%
  • Estimated annual STR gross: ~$75,315/yr
  • vs long-term rent: $11,180/yr (+574% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Standard suburban transport access

BULL CASE

If Willow Grove maintains 3%+ annual growth and vacancy stays below 2.0%, median prices could reach $1,210,616 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Willow Grove pull back 10-15% from $1,052,710, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

  • Distance from CBD may limit long-term capital growth potential

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

Willow Grove carries elevated risk that outweighs potential returns at current levels. A recovery market combined with moderate vacancy risk warrants caution. Avoid new acquisitions unless significant discount to median pricing is achievable. Re-evaluate if vacancy falls below 2.5% or annual price growth exceeds 3%.

  • Entry range: $947,439$1,157,981
  • 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.

Gentrification Index

Pre-gentrification3.5/10
Low socioeconomic base — classic gentrification precondition
Active development pipeline (1400 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
3.0%
p.a.
2yr Forecast
2.8%
p.a.
5yr Forecast
2.4%
p.a.

Basis: 5yr CAGR 3.2% + 10yr CAGR 4.6%

Headwinds
  • High supply pipeline (1400 new approvals) — may cap price growth

Suburb Metric Thresholds

1 green6 yellow9 red
Rental Vacancy Rate
2.8 high impact
Days on Market
42 high impact
Weekly Rent (house)
215 medium impact
5yr Price CAGR
3.23 high impact
10yr Price CAGR
4.64 high impact
1yr Price Growth
7.46 medium impact
Population Growth
0.77 high impact
Median Household Income
1073 medium impact
Unemployment Rate
7.8 medium impact
Public Transport Score
0 medium impact
School Zone Quality
6.2 medium impact
Distance to CBD
108.93 medium impact
SEIFA Advantage/Disadvantage
1 medium impact
Owner Occupier Rate
69.4 medium impact
Gross Rental Yield (%)
1.06 high impact
Net Rental Yield (%)
-0.44 high impact

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

230

2020

399

2021

322

2022

302

2023

147

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 3825

Most disadvantagedLeast disadvantaged

Decile 1 of 10 — High disadvantage

Population

21,078

Education (IEO)

1/10

Econ. Resources (IER)

1/10

10-Year Investment Projection

Modelled on Willow Grove VIC data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $215/wk median rent for Willow Grove. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Willow Grove Primary School
PrimaryGovernment
6.2/10
Trafalgar High School
SecondaryGovernment
5.9/10

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.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.