Collinswood SA Property Investment

THE MARKET

Collinswood has compounded at 3.8%/yr over 5 years — a house that cost $855,792 in 2021 is worth $1,031,229 today. Properties are sitting on market for 23 days (sellers have the leverage). At the same growth rate, today's median reaches $1,242,630 by 2031.

- **Median house:** $1,031,229 | **Units:** $642,357 - **Gross yield:** 3.0% | **Net yield:** 1.5% - **5yr price CAGR:** 3.8%/yr | **3yr forecast:** 4.3%/yr - **Population:** 14,883 | **Owner-occupier rate:** 33% | **Affluence:** Very High

- **Supply pipeline:** Moderate — Development activity consistent with long-term averages

RENTAL SNAPSHOT

- **Vacancy:** 2.8% (stable) | **Rental demand:** Moderate - **Median weekly rent:** $590/wk | **Days on market:** 23 (improving) - Balanced market — vacancy manageable but monitor trend.

SHORT-TERM RENTAL

- **Median nightly rate:** $155/night | **Occupancy:** 64% - **Estimated annual STR gross:** ~$36,208/yr - **vs long-term rent:** $30,680/yr (+18% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location

BULL CASE

If Collinswood maintains 3%+ annual growth and vacancy stays below 2.0%, median prices could reach $1,185,913 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Collinswood pull back 10-15% from $1,031,229, with vacancy rising to 5.0% and rental yields softening as tenants gain leverage.

KEY RISKS

- No significant risk factors identified for this suburb

COMPARABLE MARKETS

- **Adelaide CBD** (SA): $948,000 median, 3.6% yield, 7.7% 1yr growth - **Albert Park** (SA): $880,000 median, 3.7% yield, 13.5% 1yr growth - **Aldinga Beach** (SA): $790,000 median, 4.0% yield, 8.2% 1yr growth

THE PLAY

Collinswood presents a compelling investment opportunity. The combination of solid fundamentals and moderate rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 3.0% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $928,106 – $1,134,352 - Minimum gross yield to target: 4.5% - Watch signal: vacancy dropping below 2% and days on market holding under 35

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