Tennyson SA Property Investment

SUBURB INVESTMENT BRIEF — Tennyson, SA 5022 LGA: Generated: 2026-04-11 | Estait AI Analysis

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EXECUTIVE SUMMARY

Overall Score: 68/100 — Buy

Tennyson rates as "Buy" due to strong growth fundamentals.

Tennyson sits in a growth phase of the property cycle with an overall investment score of 68 out of 100. This assessment reflects the suburb's growth trajectory, rental market health, economic resilience, and infrastructure positioning within the SA market.

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MARKET POSITION

Median house price: $3,100,000 Median unit price: $464,601 Median weekly rent: $998/week Days on market: 96 days (worsening)

Tennyson commands a premium position in the SA property landscape. Properties are spending an average of 96 days on market, pointing to softer demand conditions.

Comparable suburbs: - Hyde Park (SA): Median $2,500,000, yield 1.6%, 1yr growth -14.2% - Malvern (SA): Median $2,600,000, yield 2.1%, 1yr growth 36.5% - Medindie (SA): Median $3,500,000, yield 1.4%, 1yr growth 19.9%

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RENTAL MARKET

Gross rental yield: 1.7% Net rental yield: 0.2% Vacancy rate: 2.4% (improving) Rental demand: High

The rental market in Tennyson is characterised by high demand with a vacancy rate of 2.4%, which is near the national average of approximately 2.5%. Vacancy is trending improving, supporting landlord pricing power.

Short-term rental data indicates a median nightly rate of $155 with an estimated occupancy of 64%. This translates to an estimated annual STR revenue of $36,208 before expenses. Long-term rental at $51,896/year may offer comparable or better risk-adjusted returns given lower management overhead.

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GROWTH OUTLOOK

Population growth (5yr): 0.5% Price CAGR (5yr): 28.5% Capital growth (3yr forecast): 32.0% Supply pipeline: Low

Price growth outpacing new supply, limited development pipeline

Infrastructure & transport: - No major infrastructure projects identified. Transport: Well-connected inner-city location

If Tennyson maintains 3%+ annual growth and vacancy stays below 1.7%, median prices could reach $3,565,000 within 3 years with yields compressing slightly as capital values rise.

At current trajectory (0.5% growth, 2.4% vacancy, 1.7% yield), Tennyson offers steady returns with moderate capital appreciation in line with broader market trends.

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RISK ASSESSMENT

Market cycle position: Growth Vacancy risk: Moderate

Key risks: - Premium price point limits buyer pool and increases interest rate sensitivity

Interest rate sensitivity (est. monthly repayment on median house price, 80% LVR): - At 7%: $16,500/month - At 8%: $18,197/month - At 9%: $19,955/month

A market correction or interest rate shock could see prices in Tennyson pull back 10-15% from $3,100,000, with vacancy rising to 4.3% and rental yields softening as tenants gain leverage.

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LIVEABILITY

Affluence rating: Very High Safety score: 7.6/10 Walkability: 80/100 Owner-occupied: 34%

Schools: - Tennyson Public School (primary): Rating 10.0/10 - Tennyson East Public School (primary): Rating 9.5/10 - Tennyson West Public School (primary): Rating 9.0/10 - Tennyson High School (secondary): Rating 10.0/10

Tennyson is a highly sought-after residential area with good safety ratings and strong walkability. The 34% owner-occupier rate indicates a predominantly rental market.

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RECOMMENDATION — BUY

Tennyson presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels.

Conditions: Proceed with due diligence on specific properties. Target gross yields above 1.7% and prioritise properties with value-add potential. Consider timing entry around the current growth phase of the market cycle.

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KEY ACTION ITEMS

1. Shortlist properties in the $2,790,000 - 3,410,000 range for deeper analysis 2. Verify current vacancy and rental rates with local property managers 3. Assess STR regulatory environment with local council 4. Model cash flow at 7%+ interest rates before committing 5. Engage a buyer's agent with Tennyson market expertise for off-market opportunities

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