Elizabeth Park SA Property Investment

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## 2. Market Overview - Median house price: $680,000 - Median unit price: $580,791 - 1‑year price growth: 16.7 % - 5‑year CAGR: 2.7 % / yr - 3‑year growth forecast: 13.5 %

The suburb has posted strong short‑term upside (16.7 % in the last 12 months) while longer‑term growth remains modest (2.7 % CAGR). The forecasted 13.5 % growth over the next three years suggests continued appreciation, but the pace is unlikely to match the recent 1‑year surge.

*Days on market* is not supplied, so we cannot comment on buyer‑seller speed. With price growth still positive, sellers can expect decent capital gains, while buyers should be cautious of the relatively high recent price jump.

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## 3. Rental Market - Median weekly rent: $505 - Gross rental yield: 3.9 %

*Vacancy rate* and *demand rating* are not provided, so we cannot quantify those metrics. The 3.9 % yield indicates a moderate cash‑flow return; it is enough to cover typical holding costs but leaves limited upside for aggressive income‑focused investors.

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## 4. Short‑Term Rental Opportunity No data on STR nightly rates, occupancy, or estimated annual revenue are supplied. With only long‑term rental figures available, LTR remains the clearer investment path for now.

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## 5. Infrastructure & Growth Drivers The data set does not list any specific projects, transport upgrades, or major employment hubs. Consequently we cannot attribute demand to particular infrastructure or economic drivers beyond the general market trends reflected in price growth.

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## 6. Bull Case If the 3‑year forecast of 13.5 % materialises, the median house price could climb from $680,000 to roughly $794,000 (calculated as $680,000 × (1 + 0.135)³). A similar uplift for units would move the median from $580,791 to about $678,000. Such appreciation, combined with a stable 3.9 % yield, would improve total return for a hold investor.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Vacancy risk | Vacancy rate not disclosed – a rise could erode the modest 3.9 % yield. | | Single‑employer dependency | No employment‑base data – if the suburb relies heavily on one large employer, any downsizing could impact demand. | | Supply pipeline | No information on new housing supply – a surge in new units could pressure rents and yields. | | Rate sensitivity | With a 3.9 % yield, higher interest rates could make the property less cash‑flow positive, especially for leveraged buyers. |

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## 8. The Play - Entry range: Target $580,791 for units and $680,000 for houses (the current medians). - Minimum yield to target: Aim for ≥ 4 % gross yield to improve cash‑flow resilience; the current 3.9 % sits just below that threshold. - Watch signals: * Any published vacancy data that moves above 5 % (indicating excess supply). * Announcements of new developments or infrastructure that could alter supply/demand balance. * Changes in the 1‑year price growth rate (a slowdown may signal a market cool‑down). * Interest‑rate movements that affect borrowing costs. - Recommended strategy: Acquire at the median price, hold for 2‑3 years to capture the forecast 13.5 % price appreciation, and monitor the above signals. If vacancy rises or yields fall below the 4 % target, consider repositioning or exiting.

*All figures are taken directly from the supplied data; no assumptions have been introduced.*