Eastwood SA Property Investment

## 2. Market Overview - Median house price: $1,375,606 - Median unit price: $942,587 - 1‑year price growth: 12.3% - 5‑year CAGR: 4.7% per year - 3‑year growth forecast: 13.5%

*Signal:* Double‑digit recent growth and a 13.5% forecast over the next three years point to a seller‑driven market. Buyers will face price pressure, while investors can lock in capital‑gain potential.

## 3. Rental Market - Median weekly rent: $750 / wk - Gross rental yield: 2.8%

*Vacancy rate, demand rating:* not supplied. *Interpretation:* Yield sits below the 3–4% range often sought for pure cash‑flow investments, so investors should rely on capital growth rather than rental income alone.

## 4. Short‑Term Rental Opportunity - STR nightly rate: data not supplied - STR occupancy: data not supplied - Estimated annual STR revenue: data not supplied

*Conclusion:* With no STR data, we cannot quantify the LTR vs STR trade‑off. Until STR metrics are known, long‑term rental remains the default strategy.

## 5. Infrastructure & Growth Drivers No specific projects, transport upgrades, or major employment hubs are listed for Eastwood. Consequently, we cannot attribute demand to a particular driver or constraint beyond the price trends already shown.

## 6. Bull Case Assume the 3‑year growth forecast of 13.5% materialises and rental yields stay at 2.8%:

• House value after 3 years: $1,375,606 × 1.135 ≈ $1,560,111
• Unit value after 3 years: $942,587 × 1.135 ≈ $1,069,735

If rent holds at $750 / wk, annual gross rent stays at $38,950, giving a gross yield of 2.5% on the projected house price and 3.6% on the projected unit price. The upside is driven mainly by capital appreciation.

## 7. Risks | Risk | Detail (where data exists) | |------|----------------------------| | Vacancy risk | Vacancy rate not disclosed; a rise could push the already modest 2.8% yield lower. | | Single‑employer dependency | No employer data provided; unknown exposure. | | Supply pipeline | No information on upcoming developments; a surge in supply could dampen price growth. | | Interest‑rate sensitivity | Higher rates increase borrowing costs and could temper demand, especially given the modest yield. |

## 8. The Play - Entry range: target houses around $1.35 M–$1.40 M and units around $930 k–$960 k (aligned with current medians). - Minimum yield to target: aim for at least the current 2.8% gross yield; consider properties that can improve this through renovations or higher rent. - Watch signals: 1‑year price growth staying above 10%, 3‑year forecast remaining near 13.5%, any announced infrastructure or employment projects, and any change in vacancy data. - Recommended strategy: acquire now, hold for 3–5 years, focus on capital growth while monitoring rental market data to confirm yield stability. If reliable STR data emerges that exceeds the 2.8% gross yield, reassess the LTR vs STR mix.