Denmark WA Property Investment

Denmark · 6333 · Score: 53/100 · Hold

Median House Price
$845K
Rental Yield
4.1%
Vacancy Rate
3.0%
Median Weekly Rent
$665/wk
Median Unit Price
$321K
Population
2,691
Days on Market
45 days
Annual Growth
26.1%

Denmark Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$265.44/night
Occupancy Rate
40.96%
Est. Annual Revenue
$39K
AI Investment Analysis

Denmark WA Investment Brief

HOLD4.1% gross yield on a $845,000 median.

THE MARKET

Denmark has compounded at 2.5%/yr over 5 years — a house that cost $746,857 in 2021 is worth $845,000 today. Properties are sitting on market for 45 days (roughly balanced conditions). At the same growth rate, today's median reaches $956,040 by 2031.

  • Median house: $845,000 | Units: $320,862
  • Gross yield: 4.1% | Net yield: 2.6%
  • 5yr price CAGR: 2.5%/yr | 3yr forecast: 13.5%/yr
  • Population: 2,691 | Owner-occupier rate: 74% | Affluence: Above Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $665/wk | Days on market: 45 (stable)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

  • Median nightly rate: $265/night | Occupancy: 41%
  • Estimated annual STR gross: ~$39,684/yr
  • vs long-term rent: $34,580/yr (+15% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Mount Barker station 46.9km away

BULL CASE

If Denmark maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $971,750 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Denmark pull back 10-15% from $845,000, 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

  • Mandurah (WA): $746,319 median, 3.8% yield, 16.5% 1yr growth
  • Balga (WA): $750,000 median, 5.0% yield, 14.1% 1yr growth
  • Girrawheen (WA): $775,000 median, 4.4% yield, 16.5% 1yr growth

THE PLAY

Denmark offers balanced fundamentals but does not present an urgent buying signal. The market is in a recovery 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 4.6%.

  • Entry range: $760,500$929,500
  • 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-gentrification2.5/10
Middle-tier SEIFA — moderate gentrification pressure
Active development pipeline (279 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
3.2%
p.a.
2yr Forecast
2.9%
p.a.
5yr Forecast
2.5%
p.a.

Basis: 5yr CAGR 2.5% + 10yr CAGR 5.5%

Growth drivers
  • +Above-average population growth (1.5%/yr)
Headwinds
  • High supply pipeline (279 new approvals) — may cap price growth

Suburb Metric Thresholds

5 green6 yellow4 red
Rental Vacancy Rate
3 high impact
Days on Market
45 high impact
Weekly Rent (house)
665 medium impact
5yr Price CAGR
2.48 high impact
10yr Price CAGR
5.46 high impact
1yr Price Growth
26.15 medium impact
Population Growth
1.54 high impact
Median Household Income
1134 medium impact
Unemployment Rate
3.8 medium impact
Public Transport Score
No data medium impact
School Zone Quality
6.9 medium impact
Distance to CBD
362.24 medium impact
SEIFA Advantage/Disadvantage
5 medium impact
Owner Occupier Rate
74.1 medium impact
Gross Rental Yield (%)
4.09 high impact
Net Rental Yield (%)
2.59 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

38

2020

69

2021

50

2022

64

2023

58

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 6333

Most disadvantagedLeast disadvantaged

Decile 6 of 10 — Average

Population

6,310

Education (IEO)

7/10

Econ. Resources (IER)

6/10

10-Year Investment Projection

Modelled on Denmark WA data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $665/wk median rent for Denmark. Capital growth and rent increase are editable assumptions.

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