Croydon Park SA Property Investment

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## 2. Market Overview - Median house price: $1,125,000 - Median unit price: $667,767 - 1‑year price growth: +9.8 % - 5‑year CAGR: +4.6 % per annum - 3‑year growth forecast: +13.5 %

*Signal:* Double‑digit growth over the past year and a solid forecast signal a seller‑favourable market. Buyers will face competition, especially for houses under $1.2 m, while sellers can command premium prices.

*Days on market:* Data not provided – cannot quantify how quickly listings are selling.

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## 3. Rental Market - Median weekly rent: $645 / wk - Gross rental yield: 3.0 %

*Vacancy rate & demand rating:* Data not provided – we cannot comment on vacancy pressure or demand strength.

*Interpretation:* A 3.0 % yield sits near the median for Adelaide’s inner‑south suburbs, indicating a modest but reliable income stream. Investors should expect stable cash flow, assuming vacancy remains low.

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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 model annual STR revenue. Given the suburb’s family‑orientated profile and limited tourism draw, long‑term rental (LTR) remains the safer default strategy.

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

*Implication:* In the absence of specific infrastructure data, we rely on the strong price growth and yield figures as the primary drivers of demand. Proximity to Adelaide’s CBD (within 5 km) is a positive attribute, but we cannot quantify additional catalysts.

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

• Median house price could rise to roughly $1,276,875 (13.5 % on $1,125,000).
• Median unit price could climb to about $758,000 (13.5 % on $667,767).

Assuming rent keeps pace with price growth, the gross yield could improve to around 3.3 %, enhancing cash‑flow returns.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | Vacancy rate not supplied – a rise could erode the 3.0 % yield. | | Employer concentration | No data on single‑employer dependency – unknown exposure. | | Supply pipeline | No information on upcoming housing supply – could increase competition and pressure yields. | | Interest‑rate sensitivity | With a 3.0 % yield, any increase in borrowing costs above this level squeezes net returns. |

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## 8. The Play - Entry range: Target units around the median price of $667,767 or houses near $1,125,000. - Minimum yield target: 3.0 % gross (or higher if possible). - Watch signals: 1. Publication of days‑on‑market data – a sharp decline signals tightening supply. 2. Vacancy statistics – any rise above 3 % would warrant caution. 3. RBA interest‑rate moves – rates approaching or exceeding the yield erode cash flow. - Recommended strategy: Acquire a well‑maintained unit or house at or below the median price, hold for 3‑5 years to capture the forecast 13.5 % capital gain, and collect steady rental income at the 3.0 % yield. Adjust the portfolio if vacancy data or new supply projects emerge that could pressure returns.