Complete. Ready to settle today. Up to 5.9% gross yield. I still passed — here’s the number that changed my mind.
On yield and vacancy alone, this reads as one of the stronger numbers I’ve seen from a capital city this year — up to 5.9% gross, on a building that’s already finished, with none of the settlement risk that usually comes with new construction.
But the precinct already has approval for close to 300 new apartments on a single nearby site, with the developer’s own stated intent for nearly 700 there over time, plus a separate 326-unit build-to-rent proposal close by — against a suburb of just over 3,000 existing dwellings in total. Multiple independent sources specifically flag an oversupply of one-bedroom apartments in this precinct, which is the exact unit type this listing is built around. My scorecard has two checks — vacancy and building approvals — that override every other metric when they fail. This week, approvals failed.
That doesn’t make Phillip a bad suburb, and it doesn’t mean the yield isn’t real today. It means a wave of new stock is already signed off to compete for the same tenants — and that’s a risk I’d rather flag before your money is in the ground than explain after the fact.
Every project I bring you passes the same 14-point check — including the ones that don’t make the list. Get the full breakdown, or talk it through against what you’re already holding.
This project was assessed using a 5 layer Suburb Selection System. The framework is built for established property; new construction carries additional considerations including settlement risk and off-plan pricing. This is not financial advice — please seek independent guidance before making any investment decision.