Fullarton SA Property Investment

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## 2. Market Overview - Median house price: $1,878,905 - Median unit price: $823,851 - 1‑year price growth: 28.0 % - 5‑year CAGR: 4.7 % per year - 3‑year growth forecast: 13.5 %

*Signal:* Strong recent price appreciation (28 % in the last 12 months) and a positive 3‑year forecast (13.5 %) indicate a seller‑favourable market today. Buyers will need to price‑pay at the high end of the median range, while sellers can expect continued capital gains.

*Days on market:* Data not provided – cannot comment on market speed.

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## 3. Rental Market - Median weekly rent: $805 / wk - Gross rental yield: 2.2 %

*Vacancy rate & demand rating:* Data not provided.

*Interpretation:* A 2.2 % gross yield is low relative to the high purchase price, suggesting cash‑flow pressure for investors unless rent can be increased or financing costs are low.

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## 4. Short‑Term Rental Opportunity - STR nightly rate, occupancy, annual revenue: Data not provided.

*Conclusion:* With no STR data, we cannot quantify the short‑term rental upside. Given the low long‑term yield, investors should compare any potential STR income against the 2.2 % gross yield before deciding between LTR and STR.

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

*Implication:* Without specific infrastructure or employment data, we cannot identify additional demand catalysts beyond the strong price growth already observed.

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## 6. Bull Case If the 3‑year growth forecast of 13.5 % materialises and price momentum continues:

• House price upside: $1,878,905 × 1.135 ≈ $2,132,000 (≈ +13.5 % over three years)
• Unit price upside: $823,851 × 1.135 ≈ $935,000 (≈ +13.5 % over three years)

Capital growth of this magnitude would lift yields modestly and improve cash‑flow prospects.

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## 7. Risks | Risk | Numerical Indicator | |------|----------------------| | Low yield – gross yield of 2.2 % may not cover financing costs if interest rates rise. | | High price base – median house price of $1,878,905 and median unit price of $823,851 limit upside for cash‑flow‑focused investors. | | Rate sensitivity – any increase in borrowing rates directly erodes the thin 2.2 % yield margin. | | Data gaps – absence of vacancy, demand rating, and infrastructure information adds uncertainty to rental and growth assumptions. |

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## 8. The Play - Entry range: Target properties priced near the median levels – around $823,851 for units or $1,878,905 for houses. - Minimum yield to target: At least the current 2.2 % gross yield; higher yields would improve risk‑adjusted returns. - Watch signals: * Sustained 1‑year growth above 28 % (indicates continued price momentum). * Movement in the 3‑year forecast (up or down from 13.5 %). * Changes in interest rates that could push the effective yield below the 2.2 % threshold. - Recommended strategy: Acquire at or below median price, hold for capital growth, and monitor rental market data (vacancy, demand) to decide whether to pursue long‑term leasing or convert to short‑term rentals if STR data becomes favourable.