South Bathurst NSW Property Investment

## 2. Market Overview The median house price in South Bathurst ranges from $559,000 to $646,309, with a median unit price of $534,777. The market has experienced a 5.6% price growth over the past year and a 13.7% compound annual growth rate (CAGR) over the past five years. The 3-year growth forecast is 13.5%, indicating a strong potential for long-term capital growth. However, the days on market are not available, which may indicate a lack of recent sales data. The vacancy rate is 3.0%, which is relatively stable. For buyers, this market presents an opportunity to invest in a growing suburb, while sellers may find it challenging to negotiate high prices due to the moderate rental demand.

## 3. Rental Market The rental market in South Bathurst has a median weekly rent of $520, with a gross rental yield of 4.3%. The vacancy rate is 3.0%, indicating a moderate level of rental demand. The population of 1,583 and an owner-occupier rate of 67% suggest a relatively stable rental market. For investors, this yield is relatively attractive, considering the suburb's growth potential. However, the rental demand is moderate, which may impact the ability to find tenants quickly.

## 4. Short-Term Rental Opportunity The short-term rental market in South Bathurst has a median nightly rate of $394, with an occupancy rate of 40%. This translates to an estimated annual revenue of $72,000 (assuming 40% occupancy and $394 nightly rate). Compared to the long-term rental yield of 4.3%, the short-term rental opportunity may offer higher returns, but it also comes with higher management costs and risks. Investors should carefully consider their strategy and target audience before deciding between long-term and short-term rentals.

## 5. Infrastructure & Growth Drivers South Bathurst has limited infrastructure projects on file, but it is close to Bathurst Station, which is 2.1km away. The suburb's growth drivers are primarily driven by its potential for long-term capital growth, with a 3-year growth forecast of 13.5%. The supply pipeline is low, with price growth outpacing new supply, which may drive up prices in the long term. However, the distance from the CBD may limit long-term capital growth potential, as stated in the key risks section of the scorecard.

## 6. Bull Case If market conditions hold or improve, the upside scenario for South Bathurst is significant. With a 3-year growth forecast of 13.5%, investors could potentially see their property values increase by over 40% in the next three years. Assuming a median house price of $559,000 to $646,309, this growth could result in a potential gain of $230,000 to $280,000. However, this scenario is highly dependent on the market conditions and growth drivers, and investors should be cautious of the potential risks.

## 7. Risks The key risks associated with investing in South Bathurst include the distance from the CBD, which may limit long-term capital growth potential. The vacancy trend is stable, but the rental demand is moderate, which may impact the ability to find tenants quickly. The supply pipeline is low, which may drive up prices, but it also increases the risk of oversupply if new developments are approved. The unemployment rate is 4.0%, which is relatively low, but it may still impact the rental market. Investors should also be aware of the potential climate risks, including flood and bushfire risks, which are not on record for this suburb. As stated, "Flood risk: not on record for this suburb in the NSW LEP / state planning overlay. Order an independent flood certificate before commit." and "Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit."

## 8. The Play For investors looking to enter the South Bathurst market, we recommend targeting properties in the $559,000 to $646,309 range for houses and $534,777 for units. The minimum yield to target is 4.3%, considering the suburb's growth potential and rental market. Investors should watch for signs of improving market conditions, such as increasing demand and limited supply, before making a decision. The recommended strategy is to hold existing properties and monitor the market conditions before making any new investments. It is essential to conduct thorough research and due diligence, including ordering independent flood and bushfire risk assessments, before making any investment decisions.

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