Grange SA Property Investment

THE MARKET

Grange recorded 4.3% annual price growth over the past 5 years — a $1,500,000 house bought in 2019 would be worth approximately $1,215,261 today. Properties are sitting on the market for 46 days (roughly balanced conditions).

- **Median house:** $1,500,000 | **Units:** $375,079 - **Gross yield:** 2.8% | **Net yield:** 1.3% - **Vacancy:** 1.8% (improving) | **Rental demand:** High - **5yr price growth:** 4.3%/yr | **3yr forecast:** 4.9%/yr - **Days on market:** 46 (worsening)

STR potential: $155/night at 64% occupancy = ~$36,208/yr gross. Long-term at $42,276/yr may be simpler with comparable returns.

BULL CASE

If Grange maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,725,000 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Grange Road, Holbrooks Road and East Avenue Intersection Upgrade** (under construction). Plus 1 more project in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Grange pull back 10-15% from $1,500,000, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

WHAT TO DO

Grange presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 2.8% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,350,000 – $1,650,000 - Minimum yield to target: 4.5% - Watch signal: vacancy staying below 2% and days on market falling below 35

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