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Ormeau, QLD 4208

If you’re looking to buy, rent, or invest in property, it’s important to do your research on the suburb first. This includes looking at house prices, real estate rental market data, and other advanced metrics. Here, we’ve compiled that information for Ormeau, QLD 4208 to help you make an informed decision about your property choice in this suburb.





Market Snapshot

This page provides an overview of the area’s real estate market. The data in this snapshot illustrates typical price, median rent and gross yield metrics for this suburb. You are able to visualise these 3 key metrics as well as other important indicators in the dashboard section that follows.

Buy 

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Rent 

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Yield 

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Buy 

1BR

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Rent 

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Lower Risk RCS™

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Capital Growth RCS™

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Cashflow RCS™

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Essentials
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Yield chart
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GRC chart
Fundamentals
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IRSAD chart
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Renters to owners pie chart
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unit to houses pie charts
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Demand chart
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Inventory chart
Supply

Stock on Market

Inventory

Hold Period

Building Approvals

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SOM chart
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Inventory chart
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Hold chart
Demand

Days on Market

Vacancy Rate

Clearance Rate

Search Index

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DOM chart
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Inventory chart
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Index chart
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Auction chart

How was this calculated? Typical Price is a continuous metric calculated via a process called data fitting. Median Rent is weekly advertised rent based on rentals over the preceding 12 months. Gross Yield is Median Rent x 52 x 100 / Typical Price. To discover additional information, click the “i” icon in the top left corner of each graph or visit the Data Dictionary page.

Have a question? You can either leave a comment below or post it on our forum.

2 thoughts on “Ormeau, QLD 4208”

  1. The total adult population (15 years or older) of Ormeau 4208 QLD is 11,868, with a median age of 33. Of those, 48.40% are married, 12.09% are divorced or separated, 36.61% are single and 2.89% are widowed.

    The average household size is 3.1 people per dwelling, and the median household monthly income is estimated to be $8,676. The median monthly mortgage repayment for households in this suburb is $1,950 which is 22.48% of their earnings.

    Source: ABS Census Data (2021)

  2. Ormeau, QLD 4208 may be one of those hidden gems we have all been searching for.

    Hidden gem simply because its’ typical property value is below $800k, which considering the last decade of cheap money (low interest rates), it is rather fortunate that an area so close to the coast, belonging to an LGA of a rather large and popular town, has a rather affordable typical property value.
    Let’s look at the market snapshots in more detail.

    Its typical value sits at $761 expressed in thousands ($761K). Its median rent is $602 per week. The figures are not too far apart ($761K and $602 respectively), indicating at first glance that there is more room for growth in the typical values.

    A typical rule of thumb is that if the typical house values expressed in thousands is double median rent, the market has run out of steam with respect to capital growth. On the other hand, if the two values are very close, this means that mots of the growth have occurred in the cash flow domain which indicates that the area is potentially a single industry town. In the case of Ormeau, QLD 4208, the figures are neither too far apart nor to close suggesting that Ormeau real estate is placed right within that sweet spot where both values and rents can growth further, albeit at different pace.

    The fact that most of the growth has occurred in rents as opposed to typical values (15.46% to 0.35% respectively) is also indicative of a pendulum swing to the capital growth domain without compromising dramatically on cash flow.

    My first impression is that Ormeau is a great area for investment for those investors who want the best of both worlds—cash flow and capital growth.

    Let’s dive in deeper to see whether and why this would be the case:

    WHY:

    With a Relative Composite Score (RCS) of:
    1. 96 / 100 for risk;
    2. 90 / 100 for cashflow;
    3. 88 / 100 for capital growth;
    4. 91 / 100 score for overall.

    It has been a while since I have seen such good scores in all domains. Look at the scores in combination with the 10-year growth (83.07%), it seems as though Ormeau is a diamond in the rough which is going to now benefit from a spill over effect from adjoining areas that have grown substantially in the last decade and have now become unaffordable. Having a closer look at all suburbs in the Gold Coast LGA, most of them have experienced triple digit growth, doubling in value in the last decade, excluding Ormeau and a small number of other suburbs.

    The spill over theory can also be confirmed when looking at Ormeau GRC which was largely cyclical from 2009 to 2019, with two stints of negative growth to see a substantial picking up of the pace in 2020 and onwards.

    The fact that the RCS score are so strong is definitely more supportive of the top end of the ROI forecast which is suggested to top at 21% annually. The rental increase is forecasted to be circa 5% annually. Both support my previous comments which suggested that the coming years will see more growth in the capital growth domain however not at the expense of cashflow.

    Let’s look at other important metrics to see if they support our claims.

    Fundamentals

    ISRAD score: 6 — the ISRAD metric highlights the socio-economic standards of the area in question. For Ormeau, ISRAD of 6 is highly favourable highlighting decent buying power of its residents.

    Investment is about balancing a multitude of different metrics to predict the future so a single variable is usually not the Holy Grail.

    Caveat to previous comments: Using a single variable such as price can be very effective in decision making when there is a large enough data set—when the price data points span back 20-50 years and the entire data set can be considered as one of Bog Data. ISRAD is not a data point like price and as such cannot be used as effectively in terms of eliciting trend.

    R|O Ratio: 30% — this relatively balanced score in the renter to owner occupier is suggestible of restricted supply of properties for sale. How did I come to that conclusion? Well, if majority of the homes in the area are owner occupier homes, this means that hold periods of a particular area, if high, play a substantial role in decreasing the supply of properties on the market. Rented properties are investment properties and they tend, emphasis on tend, to have shorter hold periods.

    Side note about hold periods: In simple terms, data indicates that people who own their homes are more likely to either sell them after a short period or keep them for a long time. On the other hand, investors are more likely to sell them after a few years.

    U|H Ratio: 10% — In addition to above, this figure is highly opportunistic, suggesting that area supports larger family compositions which tends to add to the stability of the area. By stability I mean desirability to live and reduced likelihood of unreasonable property turnover. Hence why the risk score is so advantageous.

    The flow on effect is usually exemplified as such:

    Higher proportion of units = higher proportion of renters which = surplus in the supply of properties (as investors are more likely to sell them after a few years) which = subdued price and rental growth.

    The inverse is also true.

    Supply Metrics

    SoM%: 0.50% (29 listings) — this is a relatively balanced number. At first sight, this number does not provide any concerns however it is important to point out that SoM% has been slightly increasing since 2020. This is not favourable. On the other hand, the number of listings has been dropping since the Feb 2022 so the trend should balance out sooner rather than later.

    Inventory: 1.19 — This inventory number is largely opportunistic which suggests that my comment regarding SoM% balancing out sooner rather than later is more of a certainty with inventory being 1.19. Overall, the supply of properties in Ormeau is somewhat restricted.

    Hold Periods: 8.5 years — As mentioned previously, the renter to owner ration was providing some information as to the hold periods, which are proving to be quite lengthy. This is a good sign for the future potential of the market given that people are holding longer onto their property which is not exerting increased pressure on the supply of properties. More importantly, there has been a rather sharp rise in the hold periods since 2008 which indicates people are progressively more inclined to live in the area. I guess this was also evident from the ISRAD score comments. The hold period therefore provide a further restriction on the supply.

    Building Approvals Ratio: 0.62% — this figure is rather balanced which means that the restricted supply will not be negatively impacted with thew flooding of new developments.

    Overall, Ormeau’s restricted supply positions the area for price growth, all other things being equal.

    Demand Metrics

    DoM: 37 — this number is relatively balanced edging towards opportune. What is even more interesting is that the trend line of DoM has been decreasing since 2020, albeit slightly. This in combination with restricted supply forms a power punch.

    Vacancy Rate: 1.32% (9 vacancies). This represents a rather balanced figure however; we can see a sharp increase in the vacancy rate trend line since 2020. This is not favourable however given that the building approval metrics are balanced and that demand is increasing in the context of restricted supply, I don’t see the increase in the vacancy rates as something to be overly concerned about. I would however monitor these number in months to come. Just to put things into context, although there is a steep increase in the trend line, the vacancy number in 2020 was 6 while it is only 9 now.

    Overall, I have great hope for this area in the years to come and it would definitely form part of my watchlist.

    For a cheat sheet which highlights what are unfavourable, balanced and opportunistic statistics, refer to our Data Dictionary.

    If you want to contrast the metrics to better contextualise my arguments, have a look at Yeppoon, QLD for example.

  3. Orm is situated in the heart of QLD and consists of an estimated 6391 households. As we approach Q3 of 2023, the typical market price for houses within Ormeau, Postcode 4208, stands at $835,833. With median weekly rents coming in at $613, this produces an indicative yield of 3.81%, which aligns well with cash flow-focused property investors’ requirements of a yield exceeding 3%.

    Reflecting on the socio-economic elements of Ormeau, the IRSAD score indicates a relatively healthy 996 out of a possible 1217, suggesting that the local community enjoys a better-than-average socio-economic standing. Investors should be content with the renter to owner ratio at 30%, putting the suburb squarely in the desired range. Simultaneously, the low units to houses ratio (1%) further enhances its appeal, as it points to fewer landlord-tenant competitions, potentially leading to a better rental yield for property owners.

    However, the affordability index does strike a note of caution, standing at 38 years – slightly above the typical 30-year mortgage. This suggests potential investors may need to hang onto properties for a little longer than desired to realise significant capital growth.

    Looking at supply effects, the stock on market percentage for houses is measured at 0.76%, placing Ormeau in the neutral zone between 0.4% and 1.3%. Furthermore, with an alluringly low inventory level of only 1.9 months, properties in the suburb are quickly being snapped up in the market.

    The building approvals for houses tell us that new dwellings are in regular supply, with a ratio set at 0.52%. The average time it takes to sell houses in Ormeau is 41 days, meaning that it remains within moderate demand.

    Onto vacancies, the combined rate for houses and units is at a promising 1.63%, highlighting that vacancies are relatively low and there’s consistent demand in the rental market. Comparatively, the buy search index for houses is currently at 4, indicating the demand is within the neutral range.

    Ultimately, investors must observe the relevant market trends and data. No market is perfect, and sometimes a few less favourable metrics can be overshadowed by an array of positive ones. Each buyer’s unique circumstance will also hugely affect the final decision. And let’s not forget, the Relative Composite Score (RCS) developed by HtAG Analytics can automate the process of researching over 80 valuable metrics.

    It’s important to note that the above analysis provides a snapshot of current value metrics but doesn’t consider metric trends, which can also significantly influence investment decisions. Moreover, some metrics have greater importance than others based on various factors, a nuance that must be understood for a holistic analysis.

    Join HtAG Analytics to visualise these metrics trends, and gain a deeper understanding of their importance. By becoming part of HtAG Analytics, you will be empowered to make informed decisions, discerning which metrics are more significant in the context of your property investment strategy.

    This content serves to inform and does not constitute investment advice. Property investment involves risks and uncertainties, and professional advice should be sought before making any investment decisions. By leveraging expert guidance, potential investors can ensure a comprehensive understanding of the complex property investment landscape.

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