Bunbury's median house price at $950k reflects the extraordinary WA resources boom cycle. This market was previously one of the stronger cashflow plays in the dataset — at current prices it is not. Gross yield of 3.0% at $950k is strongly negative at standard LVR. The port, Alcoa alumina operations, and South West regional services provide a solid employment base, but investors entering now face a very different equation to those who purchased 18–24 months ago.
Bunbury's cashflow model depends significantly on negative gearing deductibility. Under proposed 2026 budget changes restricting NG on existing residential property purchases from July 2027, investors in this market face increased holding costs unless rents grow materially before the proposed commencement date. Verify the legislative status and your specific position with a registered tax adviser before transacting.
Both rents (+7.8% pa) and prices (+9.4% pa) are running above long-run averages in Bunbury, alongside vacancy of 0.9%. Rental growth typically validates and leads price growth in supply-constrained markets. This combination indicates demand-driven conditions rather than speculative price inflation.
Bunbury's median house price at $950k reflects the extraordinary WA resources boom cycle. This market was previously one of the stronger cashflow plays in the dataset — at current prices it is not. Gross yield of 3.0% at $950k is strongly negative at standard LVR. The port, Alcoa alumina operations, and South West regional services provide a solid employment base, but investors entering now face a very different equation to those who purchased 18–24 months ago.
Strongly negative cashflow at current price level. The WA market has run hard — assess whether price growth has already absorbed the available upside. Alcoa Pinjarra alumina carries long-term energy cost sensitivity. Vacancy at 0.9% is tight but smaller market than Perth. Data vintage 2026. Source: realestate.com.au median house. Verify independently before transacting.
3.4% yield at $1M = $33,800 annual rent vs $52,000 annual interest (80% LVR, 6.5%) = -$18,200 pre-cost. Strongly negative gearing dependent. NG restriction from July 2027 increases holding cost burden.
Model estimates only. Not financial advice. Verify independently.
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