Taylors Hill vs Upper Ferntree Gully

The median house price is $940K in Taylors Hill and $945K in Upper Ferntree Gully, so Taylors Hill is the cheaper entry point, with Upper Ferntree Gully houses about 1% dearer.

For units, Taylors Hill sits at a median of $635K against $625K in Upper Ferntree Gully, which makes Upper Ferntree Gully the more affordable unit market and Taylors Hill the pricier one.

On cash flow, Upper Ferntree Gully leads: houses there return a gross rental yield of 3.50%, compared with 3.32% in Taylors Hill, a gap of 0.18 percentage points.

Over the past year house prices moved +5.0% in Taylors Hill (an estimate) and -1.4% in Upper Ferntree Gully (an estimate), so recent momentum favours Taylors Hill, while Upper Ferntree Gully went backwards.

Rental vacancy is 0.4% in Upper Ferntree Gully and 2.6% in Taylors Hill, so landlords in Upper Ferntree Gully face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Taylors Hill is the bigger suburb, with a population of 15,419 against 3,417, roughly 4.5 times the size of Upper Ferntree Gully; a larger suburb usually means a deeper pool of buyers and tenants.

In short: Upper Ferntree Gully for rental income, Taylors Hill for a lower purchase price, Taylors Hill for recent price momentum, Upper Ferntree Gully for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.