Killarney Heights NSW Property Investment

THE MARKET

Killarney Heights has compounded at 9.7%/yr over 5 years — a house that cost $1,762,483 in 2021 is worth $2,800,000 today. Properties are sitting on market for 42 days (roughly balanced conditions). At the same growth rate, today's median reaches $4,448,270 by 2031.

- **Median house:** $2,800,000 | **Units:** $433,917 - **Gross yield:** 2.5% | **Net yield:** 1.1% - **5yr price CAGR:** 9.7%/yr | **3yr forecast:** 10.9%/yr - **Population:** 18,329 | **Owner-occupier rate:** 29% | **Affluence:** Very High

- **Supply pipeline:** Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

- **Vacancy:** 2.2% (improving) | **Rental demand:** High - **Median weekly rent:** $1,375/wk | **Days on market:** 42 (stable) - Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

- **Median nightly rate:** $195/night | **Occupancy:** 68% - **Estimated annual STR gross:** ~$48,399/yr - **vs long-term rent:** $71,500/yr (comparable — LTR offers simpler management)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If Killarney Heights maintains 3%+ annual growth and vacancy stays below 1.5%, median prices could reach $3,220,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Killarney Heights pull back 10-15% from $2,800,000, with vacancy rising to 4.0% and rental yields softening as tenants gain leverage.

KEY RISKS

- Premium price point limits buyer pool and increases interest rate sensitivity

COMPARABLE MARKETS

- **Zetland** (NSW): $2,610,153 median, 2.0% yield, 8.7% 1yr growth - **Newtown** (NSW): $2,000,000 median, 2.4% yield, 6.8% 1yr growth - **Glebe** (NSW): $2,700,000 median, 1.8% yield, 3.3% 1yr growth

THE PLAY

Killarney Heights presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.5% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $2,520,000 – $3,080,000 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market falling below 35

This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.