Albany WA Property Investment

CAUTION — 2.7% gross yield on a $1,120,000 median.

Albany has compounded at 2.1%/yr over 5 years — a house that cost $1,009,460 in 2021 is worth $1,120,000 today. Properties are sitting on market for 45 days (roughly balanced conditions). At the same growth rate, today's median reaches $1,242,644 by 2031.

• Median house: $1,120,000 | Units: $462,537
• Gross yield: 2.7% | Net yield: 1.2%
• 5yr price CAGR: 2.1%/yr | 3yr forecast: 13.5%/yr
• Population: 1,403 | Owner-occupier rate: 70% | Affluence: Average

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

• Vacancy: 3.0% (stable) | Rental demand: Moderate
• Median weekly rent: $575/wk | Days on market: 45 (stable)
• Tenant market — vacancy elevated, negotiate hard on rent.

• Median nightly rate: $266/night | Occupancy: 36%
• Estimated annual STR gross: ~$34,878/yr
• vs long-term rent: $29,900/yr (+17% STR premium — factor in higher management costs)

• No major confirmed infrastructure projects on record.
• Transport: Albany station 0.2km away

If Albany maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $1,288,000 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Albany pull back 10-15% from $1,120,000, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

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

• Mirrabooka (WA): $800,000 median, 4.5% yield, 13.2% 1yr growth
• Champion Lakes (WA): $857,315 median, 4.5% yield, 3.4% 1yr growth
• Guildford (WA): $1,130,000 median, 3.6% yield, 18.3% 1yr growth

Albany 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: $1,008,000 – $1,232,000
• 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.