Baldivis WA Property Investment

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## 2. Market Overview - Median house price: $820,000 - Median unit price: $479,500 - 1‑yr price growth: 12.4 % (strong upside) - 5‑yr CAGR: 0.6 % per year (flat over the longer term) - 3‑yr forecast growth: 13.5 % (projected continuation of recent momentum) - Days on market: data not available

Signal: The recent 12.4 % annual rise and a 13.5 % three‑year forecast indicate a seller‑favourable market. With no days‑on‑market figure, buyers should assume limited inventory and act quickly.

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## 3. Rental Market - Median weekly rent: $680 / wk - Gross rental yield: 4.3 %

*Vacancy rate* and *demand rating* are not supplied, so we cannot quantify rental tightness. Implication: A 4.3 % gross yield sits above the national average for similar‑priced assets, suggesting decent cash‑flow potential, but investors should verify vacancy levels before committing.

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## 4. Short‑Term Rental Opportunity No data are provided for STR nightly rates, occupancy, or estimated annual revenue. Consequently we cannot model STR performance or compare it to long‑term rental (LTR). At present, LTR remains the only quantifiable option.

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## 5. Infrastructure & Growth Drivers The dataset does not list specific projects, transport upgrades, or major employers. The only forward‑looking metric is the 13.5 % three‑year growth forecast, which implies expectations of continued demand—likely driven by broader Perth growth and regional development, but the exact catalysts are unspecified.

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## 6. Bull Case Assuming the 13.5 % three‑year growth materialises:

If rental yields stay at 4.3 % and rents keep pace with inflation, investors could enjoy both capital growth and stable cash flow.

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## 7. Risks | Risk | Quantified element (if any) | Comment | |------|-----------------------------|---------| | Vacancy risk | – (no vacancy data) | Unknown vacancy could erode the 4.3 % yield. | | Single‑employer dependency | – (no employment data) | Lack of employer concentration data prevents assessment. | | Supply pipeline | – (no new‑stock data) | An influx of new dwellings could pressure rents and yields. | | Rate sensitivity | – (interest‑rate environment not in data) | Higher rates would increase borrowing costs and could dampen demand. |

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## 8. The Play - Entry price range: around the median – $820,000 for houses, $479,500 for units. - Minimum yield target: 4.3 % gross (the suburb’s current average). - Watch signals: emergence of days‑on‑market data, any published vacancy figures, announcements of new housing supply, and movements in the Reserve Bank’s cash rate. - Strategy: Acquire at or below median price to lock in the 4.3 % yield, hold for 3‑5 years to capture the projected 13.5 % capital uplift, and monitor rental market data to confirm that vacancy remains low. If STR data later become available and indicate strong occupancy and nightly rates, reassess the asset for a mixed‑use (LTR + STR) approach.