Brompton SA Property Investment

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## 2. Market Overview - Median house price: $1,160,000 - Median unit price: $835,026 - 1‑year price growth: +6.5 % - 5‑year CAGR: +4.0 % / yr - 3‑year growth forecast: +13.5 %

*Signal:* A 6.5 % annual price rise and a 13.5 % forecast over the next three years indicate strong upside for sellers, while the still‑high median values give buyers a chance to lock in capital‑growth potential now. Days on market is not supplied, so we cannot comment on market speed.

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## 3. Rental Market - Median weekly rent: $675 - Gross rental yield: 3.0 %

*Vacancy rate* and *demand rating* are not provided, so we base the view on the available yield. A 3.0 % gross yield is modest; it suggests investors should rely more on capital growth than on cash‑flow, but the rent level is solid relative to the median house price.

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## 4. Short‑Term Rental Opportunity No STR data (nightly rate, occupancy, annual revenue) are supplied. With only the long‑term rent figure available, we cannot quantify an STR advantage. Until STR metrics are known, long‑term rental (LTR) remains the default strategy.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or major employers. Consequently we cannot attribute demand to a particular driver, nor identify any limiting factor beyond the generic market trends already outlined.

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## 6. Bull Case If the 3‑year forecast of +13.5 % materialises:

• A median house at $1,160,000 could reach ≈ $1,316,600 in three years.
• A median unit at $835,026 could reach ≈ $950,000 in the same period.

Capital growth of this magnitude would lift total returns well above the current 3.0 % rental yield.

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## 7. Risks | Risk | Quantified Element | Impact | |------|-------------------|--------| | Rate sensitivity | Gross yield 3.0 % | Low yield leaves cash‑flow vulnerable to interest‑rate hikes. | | Vacancy risk | Vacancy rate not disclosed | Unknown vacancy could erode the modest yield. | | Single‑employer dependency | Employment data not disclosed | Lack of information prevents assessment of concentration risk. | | Supply pipeline | New‑stock data not disclosed | An influx of new units could pressure rents and yields. |

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## 8. The Play - Entry range: - Houses around $1,160,000 - Units around $835,026 - Minimum yield target: > 3.0 % (aim for 3.5 %‑4.0 % after accounting for expenses). - Watch signals: 1. Changes in the vacancy rate (once data appear). 2. Interest‑rate movements that affect cash‑flow. 3. Actual price growth versus the 13.5 % 3‑year forecast. - Recommended strategy: Acquire a property at the median price, hold for 3‑5 years to capture the forecasted capital growth, and monitor rental market data to confirm the yield target. If STR data later emerge showing a higher net return, consider converting the asset to short‑term rental, but otherwise maintain a long‑term rental focus.