Lockleys SA Property Investment

THE MARKET

Lockleys recorded 11.8% annual price growth over the past 5 years — a $1,400,000 house bought in 2019 would be worth approximately $801,529 today. Properties are sitting on the market for 35 days (roughly balanced conditions).

- **Median house:** $1,400,000 | **Units:** $369,635 - **Gross yield:** 2.6% | **Net yield:** 1.1% - **Vacancy:** 1.5% (improving) | **Rental demand:** High - **5yr price growth:** 11.8%/yr | **3yr forecast:** 13.3%/yr - **Days on market:** 35 (stable)

STR potential: $155/night at 64% occupancy = ~$36,208/yr gross. Long-term at $35,880/yr may be simpler with comparable returns.

BULL CASE

If Lockleys maintains 3%+ annual growth and vacancy stays below 1.0%, median prices could reach $1,610,000 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Lockleys Hotel Expansion** (under construction). Plus 2 more projects in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Lockleys pull back 10-15% from $1,400,000, with vacancy rising to 2.7% and rental yields softening as tenants gain leverage.

WHAT TO DO

Lockleys 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 2.6% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

- Entry range: $1,260,000 – $1,540,000 - 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.