Ulladulla NSW Property Investment

## 2. Market Overview - Median house price: $913,500 - Median unit price: $725,000 - 1‑year price growth: 3.0 % - 5‑year CAGR: 13.1 % per year - 3‑year growth forecast: 13.5 %

The market has delivered solid long‑term appreciation (13.1 % CAGR) while only modestly increasing in the past year (3.0 %). This mix suggests a balanced environment – sellers can still command price growth, but buyers benefit from a relatively low recent increase, keeping entry points reasonable. *Days on market* is not supplied, so we cannot comment on the speed of transactions.

## 3. Rental Market - Median weekly rent: $600 / wk - Gross rental yield: 3.4 %

Vacancy rate and demand rating are not provided, so we cannot quantify those metrics. The 3.4 % yield, combined with a $600 weekly rent, indicates steady rental income that covers a portion of financing costs but does not deliver high cash‑flow upside.

## 4. Short‑Term Rental Opportunity No data on nightly STR rates, occupancy, or estimated annual revenue are supplied. Consequently we cannot calculate STR performance or compare LTR versus STR viability for Ulladulla.

## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or major employment hubs. Without those details we cannot identify concrete demand drivers or constraints.

## 6. Bull Case If the 13.5 % 3‑year growth forecast materialises, a median house priced at $913,500 could rise to roughly $1,036,000 in three years (≈ $122,500 capital gain). Units could see a similar proportional uplift from $725,000 to about $822,000. This appreciation, added to the existing 3.4 % yield, would improve total return for a hold strategy.

## 7. Risks - Vacancy risk: No vacancy figure supplied; a rise in vacancies would erode the 3.4 % yield. - Employer concentration: No employment data provided; reliance on a single large employer would increase risk if that employer contracts. - Supply pipeline: Absence of data on new dwellings means we cannot gauge future oversupply, but any significant new construction could pressure rents and yields. - Interest‑rate sensitivity: As with all Australian property, higher rates would increase borrowing costs and could compress net yields.

## 8. The Play - Entry range: Target purchases between the median unit and house levels – $725,000 – $913,500. - Minimum yield target: Aim for at least the current 3.4 % gross yield; lower yields would require strong capital‑gain expectations. - Watch signals: 1. Confirmation of the 3‑year growth forecast (e.g., quarterly price‑growth reports). 2. Emerging vacancy data – rising vacancies would signal weakening demand. 3. Any announced infrastructure or employment projects that could lift demand. - Recommended strategy: Acquire within the entry range, hold for 3–5 years to capture projected price appreciation, and monitor vacancy and infrastructure news to decide whether to stay the course or exit.