Kensington Park SA Property Investment

THE MARKET

Kensington Park recorded 4.9% annual price growth over the past 5 years — a $1,700,000 house bought in 2019 would be worth approximately $1,338,355 today. Properties are sitting on the market for 61 days (buyers have some room to negotiate).

- **Median house:** $1,700,000 | **Units:** $389,129 - **Gross yield:** 2.5% | **Net yield:** 0.9% - **Vacancy:** 2.0% (improving) | **Rental demand:** High - **5yr price growth:** 4.9%/yr | **3yr forecast:** 5.5%/yr - **Days on market:** 61 (worsening)

STR potential: $155/night at 64% occupancy = ~$36,208/yr gross. Long-term at $41,600/yr may be simpler with comparable returns.

BULL CASE

If Kensington Park maintains 3%+ annual growth and vacancy stays below 1.4%, median prices could reach $1,955,000 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Kensington Park pull back 10-15% from $1,700,000, with vacancy rising to 3.6% and rental yields softening as tenants gain leverage.

WHAT TO DO

Kensington Park 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 2.5% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,530,000 – $1,870,000 - Minimum yield to target: 4.5% - Watch signal: vacancy dropping 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.