Spring Terrace NSW Property Investment

## 1. Investment Verdict Based on the data, the investment verdict for Spring Terrace, NSW is to Hold, with the single most important number being the 56.0/100 investment scorecard rating. This rating suggests that while the suburb has some positive attributes, it also has some limitations that prevent it from being a top-rated investment opportunity.

## 2. Market Overview The median house price in Spring Terrace is approximately $1,360,000, although this figure is pending peer validation and should be treated with caution. The gross rental yield is 1.9%, which is relatively low compared to other suburbs. The 5-year compound annual growth rate (CAGR) is 14.9%, indicating a strong growth trend in the past. However, the 3-year growth forecast is 13.4%, which is still positive but slightly lower than the historical growth rate. With a population of 123 and an owner-occupier rate of 85%, the market is likely to be driven by owner-occupiers rather than investors.

## 3. Rental Market The rental market in Spring Terrace has a vacancy rate of 3.0%, which is relatively stable. The median weekly rent is $500, and the gross rental yield is 1.9%, which is moderate. The rental demand is rated as moderate, with an unemployment rate of 1.7%, which is relatively low. This suggests that the rental market is relatively stable, but the low yield may make it less attractive to investors.

## 4. Short-Term Rental Opportunity The short-term rental (STR) market in Spring Terrace has a median nightly rate of $492, with an occupancy rate of 40%. This translates to an estimated annual revenue of around $80,000, assuming a 40% occupancy rate. However, considering the relatively low occupancy rate and the fact that the nightly rate is close to the weekly rent, it may not be the most attractive option for investors. A long-term rental (LTR) strategy may be more suitable for this suburb.

## 5. Infrastructure & Growth Drivers There are no major projects on file for Spring Terrace, which may limit the suburb's growth potential. The nearest transport option is the Millthorpe station, which is 9.9km away. The supply pipeline is low, with price growth outpacing new supply, which may drive up prices in the short term. However, the distance from the CBD may limit long-term capital growth potential.

## 6. Bull Case If conditions hold or improve, the bull case for Spring Terrace is that the suburb will continue to experience strong growth, driven by its limited supply pipeline and relatively low vacancy rate. With a 3-year growth forecast of 13.4%, the suburb could see significant capital growth, making it an attractive option for investors. However, this is contingent on the suburb's infrastructure and amenities improving, which is not currently on the horizon.

## 7. Risks There are several risks associated with investing in Spring Terrace. The distance from the CBD may limit long-term capital growth potential, with the nearest transport option being 9.9km away. The low yield of 1.9% may also make it less attractive to investors. Additionally, the suburb's small population and limited supply pipeline may make it vulnerable to market fluctuations. The vacancy risk is relatively low, with a stable vacancy rate of 3.0%. However, the single-employer dependency risk is not applicable, as there is no dominant employer in the suburb.

## 8. The Play The recommended strategy for Spring Terrace is to hold, rather than buy or sell. The entry range for investors is likely to be around $1,360,000, although this figure is pending peer validation. The minimum yield to target is around 2.0%, which is slightly higher than the current yield. Investors should watch for signs of improving infrastructure and amenities, as well as changes in the supply pipeline. However, they should also be cautious of the potential risks, including the distance from the CBD and the low yield.

Flood risk: not on record for this suburb in the NSW LEP / state planning overlay. Order an independent flood certificate before commit. Bushfire risk: not on record for this suburb in the state planning overlay. Order an independent BAL (Bushfire Attack Level) assessment before commit. Heritage status is not on record — confirm with the council duty planner / a Section 10.7 (NSW) or equivalent certificate.

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