Beulah Park SA Property Investment

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## 2. Market Overview - Median house price: $1,672,488 - Median unit price: $936,702 - 1‑yr price growth: 14.3 % - 5‑yr CAGR: 5.3 % per annum - 3‑yr growth forecast: 13.5 %

*Signal:* Double‑digit growth in the past year and a forward‑looking 13.5 % forecast over the next three years indicate a seller‑favourable market. Buyers will need to act quickly and may face competition, while sellers can command premium prices.

*Days on market:* Data not provided – cannot comment on speed of sales.

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## 3. Rental Market - Median weekly rent: $703 / wk - Gross rental yield: 2.2 %

*Vacancy rate & demand rating:* Data not provided.

*Interpretation:* A 2.2 % yield is modest, suggesting rental income alone will not drive returns; investors must rely on capital growth. The $703 weekly rent translates to $36,556 annual gross income per property, which aligns with the quoted yield.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: Data not provided - STR occupancy: Data not provided

*Conclusion:* With no STR metrics available, we cannot quantify annual STR revenue. Given the modest long‑term yield, investors should first verify local short‑term rental regulations and market demand before favouring STR over LTR.

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## 5. Infrastructure & Growth Drivers - Known projects, transport links, employment base: Data not provided

*Implication:* The strong price growth and high investment scorecard (69/100) imply underlying demand drivers, but specific infrastructure or employment catalysts are not listed. Prospective buyers should research upcoming council projects, public transport upgrades, and major employers in the area.

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## 6. Bull Case Assume the 3‑year growth forecast of 13.5 % materialises each year:

• Starting median house price: $1,672,488
• Projected price after 3 years: $1,672,488 × (1 + 0.135)³ ≈ $2,044,000

*Potential upside:* ≈ $371,500 capital gain on a median house, plus any rental income earned during the holding period.

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## 7. Risks | Risk | Quantified Concern | Comment | |------|-------------------|---------| | Vacancy risk | Data not provided – unknown vacancy could erode the already low 2.2 % yield. | | Single‑employer dependency | Data not provided – lack of employer concentration data limits assessment. | | Supply pipeline | Data not provided – new developments could increase supply and pressure prices. | | Rate sensitivity | Yield of 2.2 % leaves little margin; a 1 % rise in interest rates could make the property cash‑flow negative. |

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## 8. The Play - Entry range: Target houses around $1.6 M–$1.7 M and units near $936,000 (the median figures). - Minimum yield to target: Aim for ≥2.2 % gross yield; higher yields improve cash‑flow resilience. - Watch signals: 1. Changes in the Reserve Bank’s cash rate (rate hikes directly affect yield viability). 2. Release of any local infrastructure or transport projects. 3. Updated vacancy and STR occupancy data for the suburb. - Recommended strategy: Acquire a median‑priced house or unit now to lock in the 14.3 % recent growth. Hold for 3–5 years to capture the projected 13.5 % annual growth, while monitoring interest‑rate movements and any new supply that could affect yields. If STR data later proves strong, consider a secondary strategy to convert to short‑term letting, but only after confirming regulatory clearance.