Swansea TAS Property Investment

THE MARKET

Swansea recorded 2.0% annual price growth over the past 5 years — a $615,000 house bought in 2019 would be worth approximately $557,024 today. Properties are sitting on the market for 145 days (buyers have some room to negotiate).

- **Median house:** $615,000 | **Units:** $400,000 - **Gross yield:** 1.9% | **Net yield:** 0.4% - **Vacancy:** 2.0% (stable) | **Rental demand:** High - **5yr price growth:** 2.0%/yr | **3yr forecast:** 2.2%/yr - **Days on market:** 145 (worsening)

STR potential: $220/night at 45% occupancy = ~$36,135/yr gross. That's a **209% premium** over long-term rent — but factor in higher management costs and council rules.

BULL CASE

If Swansea maintains 3%+ annual growth and vacancy stays below 1.4%, median prices could reach $707,250 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Swansea pull back 10-15% from $615,000, with vacancy rising to 3.6% and rental yields softening as tenants gain leverage.

WHAT TO DO

Swansea offers balanced fundamentals but does not present an urgent buying signal. The market is in a growth phase with moderate 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: $553,500 – $676,500 - Minimum yield to target: 4.5% - Watch signal: vacancy dropping 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.