Woodville Park SA Property Investment

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## 2. Market Overview - Median house price: $1,650,000 - Median unit price: $638,920 - 5‑year CAGR: 3.2 % per year - 3‑year growth forecast: 13.5 % (projected increase over the next three years) - Days on market: data not supplied

Signal: A 5‑year CAGR of 3.2 % shows modest long‑term appreciation, while the 13.5 % 3‑year forecast suggests accelerating momentum. With median prices already high, sellers must price competitively; buyers can negotiate on the basis of the modest yield (2.1 %).

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## 3. Rental Market - Median weekly rent: $665 / wk - Gross rental yield: 2.1 % - Vacancy rate: data not supplied - Demand rating: data not supplied

Implication: A 2.1 % gross yield is low by Australian standards, indicating limited cash‑flow upside and heightened sensitivity to interest‑rate moves. Investors should rely more on capital growth than on rental income.

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## 4. Short‑Term Rental Opportunity - STR nightly rate: data not supplied - STR occupancy: data not supplied - Estimated annual STR revenue: data not supplied

Conclusion: With no STR metrics available, we cannot quantify the short‑term rental upside. Given the low long‑term yield, investors should treat STR as a secondary option only if they can source reliable market data and achieve a substantially higher yield than 2.1 %.

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## 5. Infrastructure & Growth Drivers - Known projects / transport / employment base: data not supplied

Observation: The 13.5 % 3‑year growth forecast implies underlying demand drivers (e.g., infrastructure or employment) are likely positive, but specific projects cannot be cited without data.

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## 6. Bull Case Assume the 13.5 % forecast materialises over the next three years:

If yields improve to 2.5 % through rent growth or price moderation, the annual cash‑flow on a house would rise from $34,580 (2.1 % of $1.65 M) to $41,150 (2.5 % of $1.65 M). Combined capital growth and modest yield uplift could deliver total returns north of 15 % p.a. over the three‑year horizon.

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## 7. Risks | Risk | Quantified Concern | |------|--------------------| | Low yield (2.1 %) – makes the investment highly rate‑sensitive; a 1 % rise in borrowing cost could erode net cash flow. | | Vacancy uncertainty – vacancy rate is not provided; a rise above 5 % would further depress cash flow. | | Supply pipeline – no data on upcoming developments; a surge in new units could push yields lower. | | Growth data gaps – 1‑year price growth is N/A, limiting short‑term trend insight. |

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## 8. The Play - Entry range: target purchases near the median – $1,650,000 for houses or $638,920 for units. - Minimum yield to target: ≥ 2.1 % (the current gross yield) – aim for any property that can deliver a higher effective yield after expenses. - Watch signals: 1. Changes in days on market (once data becomes available). 2. Interest‑rate movements that affect net cash flow. 3. Announcements of new supply or infrastructure that could shift demand. - Recommended strategy: acquire a quality house or unit at or below the median price, hold for 3‑5 years to capture the projected 13.5 % capital growth, and monitor rent reviews to improve yield. If reliable STR data emerges that shows a nightly rate and occupancy delivering > 5 % gross yield, consider a mixed‑use (long‑term + short‑term) approach.

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*All figures are taken directly from the supplied data; no assumptions beyond the provided numbers have been made.*