Magill SA Property Investment

The single most important number is 0.8% vacancy rate. That’s a landlord’s market. With very high rental demand and a low supply pipeline, Magill offers strong capital growth potential with minimal vacancy risk. The 70.0/100 scorecard confirms this is a buy, not a hold or avoid.

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Median house price sits at $1,490,000, with units at $660,000. The 1-year price growth of 18.1% shows strong momentum, while the 5-year CAGR of 5.4%/yr indicates consistent, not speculative, appreciation. The 3-year growth forecast of 13.5% suggests further upside.

Days on market data is not available, but the 0.8% vacancy rate and very high rental demand signal a seller-favourable market. Buyers face competition, but investors entering now can capture future growth.

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Vacancy rate is 0.8% — well below the 3% equilibrium. Weekly rent is $690/wk, yielding a gross rental yield of 2.4%. That’s low compared to higher-yield suburbs like Kilburn (2.8%) or Woodville North (3.0%), but Magill’s capital growth profile offsets this.

Rental demand is rated very high. For investors, this means near-zero vacancy risk and consistent rental income. The low yield is the trade-off for strong capital appreciation.

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Median nightly rate is $480, with occupancy at 42%. Estimated annual revenue: $480 × 365 × 0.42 = $73,584. Compare to long-term rental income: $690/wk × 52 = $35,880.

STR generates double the gross income. However, 42% occupancy is below the 60-70% benchmark for profitable STRs. Management costs, council regulations, and seasonal demand could eat into margins. For most investors, LTR is safer and more predictable here.

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Two major projects are underway: - Adelaide Metro Train Services Franchise (under delivery) — improves connectivity. - North South Corridor (under construction) — a major road project reducing travel times across Adelaide.

Transport access: Botanic Gardens station is 6.2km away — not walkable but drivable. Employment base is Adelaide’s broader economy, with unemployment at 4.8% (below national average).

Supply pipeline is low — price growth is outpacing new supply. Limited development means existing stock becomes more valuable over time. Owner-occupier rate of 70% adds stability — fewer renters means less turnover risk.

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If current conditions hold: - 3-year forecast growth of 13.5% on a $1.49M house = $201,150 in capital gains. - Vacancy stays below 1%, rental demand remains very high. - Infrastructure projects (North South Corridor) improve accessibility, potentially boosting demand further. - Low supply pipeline means limited competition for buyers, supporting price growth.

Upside scenario: If Adelaide’s economy strengthens and migration increases, Magill could outperform the 13.5% forecast, potentially hitting 20%+ over 3 years.

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• Yield risk: 2.4% gross yield is low. If interest rates rise, negative cash flow is possible. Compare to Kilburn (2.8%) or Woodville North (3.0%) — Magill underperforms on income.
• Vacancy risk: Minimal at 0.8%, but if demand softens, a rise to 2-3% would still be manageable.
• Single-employer dependency: No major single employer identified — risk is low.
• Supply pipeline: Low, which is positive for prices but means limited new rental stock — could push rents higher.
• Rate sensitivity: At $1.49M median, a 1% rate rise adds ~$14,900/year in interest costs. Investors need strong capital growth to justify this.

Proximity to CBD is not a risk — Magill is within 10km of Adelaide’s centre, which is a positive attribute.

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• Entry range: $1.4M–$1.6M for houses; $600k–$700k for units.
• Minimum yield to target: 2.4% gross yield is the floor. If you can’t achieve at least that, look elsewhere.
• Watch signals: Vacancy rate rising above 1.5%, or 1-year growth dropping below 5%. If either happens, reassess.
• Recommended strategy: Buy and hold for capital growth. Use LTR for stable income. Avoid STR unless you can push occupancy above 50%.

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