The market in Walloon is catching the eye of savvy property investors — and for good reason. Over the past 12 months, house prices in Walloon have climbed by approximately 14 per cent, reflecting strong demand and solid upward momentum in this Ipswich-region suburb. At the same time, the rental market is tight: vacancy rates are around 2.5 per cent (or even lower, depending on source), signalling limited supply and strong tenant demand.
For our clients who invested in Walloon two years ago, the results speak for themselves: many are now looking at more than $200,000 in equity gains. This kind of uplift demonstrates the potential of targeting growth-markets with low vacancy and strong fundamentals.
Why Walloon is Delivering
Several factors underpin Walloon’s performance:
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Affordability relative to bigger markets gives investors the ability to enter at a more favourable price point, thereby capturing capital growth as demand rises.
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Tight rental supply — a vacancy rate around the 2.5 per cent mark means fewer empty properties and stronger competition among tenants. That tends to support stable rental income as well as capital growth.
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Rapid price growth — with median house values in the vicinity of $750,000 and year-on-year increases of 14-15 per cent, the suburb is clearly in an upward phase.
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Investor-friendly yield — while capital growth has stolen the headline, median weekly rents near $570 and gross yields around 3.7-4 per cent still make sense for an investment with growth bias.
What This Means for Investors
If you purchased a house in Walloon two years ago and the market rose say ~14 per cent in the last year (and assuming a similar lift in the year before), your asset might have gone from, for example, ~$650,000 to ~$780,000+ — easily generating a $200,000+ uplift in equity depending on your purchase price and timing. That kind of capital gain puts you well ahead of many more established markets that are seeing slower growth.
What’s more, the low vacancy rate means reduced risk of sitting empty and typically shorter time on market between tenants. That supports investor confidence and suggests the tenancy side remains robust. With Walloon’s market clearly in demand, there’s less downside risk from oversupply (for now) and more upside in riding the growth wave.
Some Things to Consider
Of course, no investment comes without caveats. With strong growth behind us, investors should remain mindful of:
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Interest rate moves — higher rates may impact affordability and potentially slow growth.
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Supply risk — New land and housing releases in the broader Ipswich region may eventually moderate the rate of growth if stock becomes plentiful.
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Yield vs. growth trade-off — At ~3.7-4 per cent yield, the income return is moderate vs. some other markets; the primary play here is in capital growth.
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Timing — The strong growth seen makes careful purchase timing and purchase price very important if you’re entering the market now rather than two years ago.
Final Thoughts
For property investors looking to capitalise on solid growth and tenant demand, Walloon offers a compelling proposition. With a vacancy rate that’s tightly held and houses increasing in value by double digits annually, our clients who moved early are already reaping the benefits. If you’re still watching this market, now is the time to assess whether you can catch the tail of this growth run — or whether other markets might now offer better entry value. At Mirren Investment Properties, we’ll continue to monitor Walloon closely and help investors navigate what’s next.
Ready to explore the next high-growth opportunity?
Contact us today to speak with our property strategy team and learn how you can start or expand your investment portfolio with confidence.
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