Marion SA Property Investment

THE MARKET

Marion recorded 4.2% annual price growth over the past 5 years — a $1,000,000 house bought in 2019 would be worth approximately $814,069 today. Properties are sitting on the market for 30 days (roughly balanced conditions).

- **Median house:** $1,000,000 | **Units:** $432,720 - **Gross yield:** 3.5% | **Net yield:** 2.0% - **Vacancy:** 1.1% (improving) | **Rental demand:** Very High - **5yr price growth:** 4.2%/yr | **3yr forecast:** 4.8%/yr - **Days on market:** 30 (stable)

STR potential: $155/night at 64% occupancy = ~$36,208/yr gross. Long-term at $34,840/yr may be simpler with comparable returns.

BULL CASE

If Marion maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $1,150,000 within 3 years with yields compressing slightly as capital values rise.

Notable infrastructure: **Marion Road and Sir Donald Bradman Drive Intersection Upgrade** (completed). Plus 3 more projects in the pipeline.

BEAR CASE

A market correction or interest rate shock could see prices in Marion pull back 10-15% from $1,000,000, with vacancy rising to 2.0% and rental yields softening as tenants gain leverage.

WHAT TO DO

Marion offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with low vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 4.0%.

- Entry range: $900,000 – $1,100,000 - Minimum yield to target: 4.5% - Watch signal: vacancy staying below 2% and days on market holding under 35

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