South Grafton NSW Property Investment

Richmond Valley · 2460 · Score: 55/100 · Hold

Median House Price
$471K
Rental Yield
5.5%
Vacancy Rate
3.0%
Median Weekly Rent
$500/wk
Median Unit Price
$348K
Population
6,288
Days on Market
41 days
Annual Growth
6.2%

South Grafton Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$175.43/night
Occupancy Rate
%
Est. Annual Revenue
$42K
AI Investment Analysis

South Grafton NSW Investment Brief

HOLD$471,377 median with 15.5%/yr growth over 5 years.

THE MARKET

South Grafton has compounded at 15.5%/yr over 5 years — a house that cost $229,329 in 2021 is worth $471,377 today. Properties are sitting on market for 41 days (roughly balanced conditions). At the same growth rate, today's median reaches $968,899 by 2031.

  • Median house: $471,377 | Units: $348,427
  • Gross yield: 5.5% | Net yield: 4.0%
  • 5yr price CAGR: 15.5%/yr | 3yr forecast: 13.5%/yr
  • Population: 6,288 | Owner-occupier rate: 71% | Affluence: Below Average
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 3.0% (stable) | Rental demand: Moderate
  • Median weekly rent: $500/wk | Days on market: 41 (stable)
  • Tenant market — vacancy elevated, negotiate hard on rent.

SHORT-TERM RENTAL

Insufficient STR data for this suburb. Run a specific address analysis for property-level STR projections.

INFRASTRUCTURE & CATALYSTS

  • No major confirmed infrastructure projects on record.
  • Transport: Standard suburban transport access

BULL CASE

If South Grafton maintains 3%+ annual growth and vacancy stays below 2.1%, median prices could reach $542,084 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in South Grafton pull back 10-15% from $471,377, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

  • Distance from CBD may limit long-term capital growth potential

COMPARABLE MARKETS

  • Dareton (NSW): $331,618 median, 6.0% yield, -8.0% 1yr growth
  • Reddestone (NSW): $546,500 median, 3.6% yield, -3.8% 1yr growth
  • Werris Creek (NSW): $336,485 median, 6.0% yield, 4.7% 1yr growth

THE PLAY

South Grafton offers balanced fundamentals but does not present an urgent buying signal. The market is in a boom phase with moderate vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 6.0%.

  • Entry range: $424,239$518,515
  • Minimum gross yield to target: 5.8%
  • 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.

Gentrification Index

Active gentrification6.0/10
Low socioeconomic base — classic gentrification precondition
Strong capital growth (15.5% CAGR) — above national average
Active development pipeline (292 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
12.7%
p.a.
2yr Forecast
11.6%
p.a.
5yr Forecast
10.1%
p.a.

Basis: 5yr CAGR 15.5% + 10yr CAGR 10.3%

Headwinds
  • High supply pipeline (292 new approvals) — may cap price growth

Suburb Metric Thresholds

5 green5 yellow6 red
Rental Vacancy Rate
3 high impact
Days on Market
41 high impact
Weekly Rent (house)
500 medium impact
5yr Price CAGR
15.46 high impact
10yr Price CAGR
10.31 high impact
1yr Price Growth
6.2 medium impact
Population Growth
1.24 high impact
Median Household Income
1165 medium impact
Unemployment Rate
6.6 medium impact
Public Transport Score
0 medium impact
School Zone Quality
3.5 medium impact
Distance to CBD
488.79 medium impact
SEIFA Advantage/Disadvantage
2 medium impact
Owner Occupier Rate
71.4 medium impact
Gross Rental Yield (%)
5.52 high impact
Net Rental Yield (%)
4.02 high impact

Macro Environment

Macro Indicators

Cash Rate

4.35%

0.25%

Cash rate as at 2026-05-06 · Credit data 2026-05

Suburb Supply & Demand

Suburb Supply Pipeline — New Dwelling Approvals

56

2020

72

2021

57

2022

46

2023

61

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 2460

Most disadvantagedLeast disadvantaged

Decile 2 of 10 — High disadvantage

Population

31,079

Education (IEO)

1/10

Econ. Resources (IER)

3/10

10-Year Investment Projection

Modelled on South Grafton NSW data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $500/wk median rent for South Grafton. Capital growth and rent increase are editable assumptions.

Schools

In your catchment

Gillwinga PS
PrimaryGovernment
3/10
Sth Grafton HS
SecondaryGovernment
4.8/10

These are the government-school zones containing this suburb centroid. Specific addresses within the suburb may fall in different catchments — confirm with the school directly.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.