Fitzroy Crossing WA Property Investment

## 1. Investment Verdict We recommend a "Hold" approach for Fitzroy Crossing, WA, with the single most important number being the 7.6% 1-year price growth, which indicates a recovery market cycle. However, the overall Investment Scorecard of 39.0/100 suggests caution.

## 2. Market Overview The median house price in Fitzroy Crossing is approximately $524,018, pending peer validation, while the median unit price is $197,712. The market is experiencing a 7.6% 1-year price growth, with a 5-year CAGR of 0.1%/yr. The 3-year growth forecast is 13.5%, indicating potential for future growth. However, the days on market are not available, making it difficult to determine the current market demand. For buyers, this means that there may be opportunities for growth, but sellers may face challenges in selling their properties quickly. The owner-occupier rate is 2%, indicating a predominantly rental-driven market.

## 3. Rental Market The vacancy rate in Fitzroy Crossing is 3.0%, which is relatively stable. The median weekly rent is $100/wk, resulting in a gross rental yield of 1.0%. The rental demand is moderate, with an unemployment rate of 5.5%. This suggests that investors may face challenges in finding tenants, but the relatively low vacancy rate indicates that there is still demand for rental properties. The low gross rental yield, however, may not be attractive to investors seeking higher returns.

## 4. Short-Term Rental Opportunity The median nightly rate for short-term rentals in Fitzroy Crossing is $213/night, with an occupancy rate of 28%. This translates to an estimated annual revenue of approximately $27,000 (assuming 365 nights per year). Compared to the long-term rental market, the short-term rental market may offer higher returns, but the occupancy rate is relatively low. Investors should carefully consider the potential benefits and drawbacks of short-term rentals in this market.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Fitzroy Crossing, and the transport infrastructure is standard suburban access. The supply pipeline is low, with price growth outpacing new supply, and a limited development pipeline. This may indicate that the market is experiencing growth due to limited supply, but the lack of major projects may limit long-term capital growth potential. The key risk is the distance from the CBD, which may limit long-term capital growth potential.

## 6. Bull Case If the market conditions hold or improve, the 3-year growth forecast of 13.5% could result in significant capital growth. With a median house price of approximately $524,018, a 13.5% growth rate could result in a potential increase of around $70,000 in value over the next three years. However, this is speculative and depends on various factors, including changes in supply and demand.

## 7. Risks The specific risks associated with investing in Fitzroy Crossing include a vacancy risk of 3.0%, which is relatively stable. The single-employer dependency risk is not explicitly stated, but the unemployment rate of 5.5% may indicate some level of economic vulnerability. The supply pipeline risk is low, with price growth outpacing new supply, but this may also limit long-term capital growth potential. The rate sensitivity risk is not explicitly stated, but investors should be aware of potential changes in interest rates and their impact on the market. Flood risk: not on record for this suburb in the state planning overlay. Order an independent flood certificate before commit. Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit. Heritage status is not on record — confirm with the council duty planner / a Section 10.7 (NSW) or equivalent certificate.

## 8. The Play For investors considering entering the Fitzroy Crossing market, we recommend an entry range of approximately $450,000 to $550,000, targeting a minimum yield of 2.0%. Investors should watch for signals such as changes in the vacancy rate, rental demand, and supply pipeline. The recommended strategy is to hold existing properties and monitor market conditions closely, as the market is experiencing a recovery cycle. However, investors should be cautious due to the overall Investment Scorecard of 39.0/100.

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.