Bute SA Property Investment
Wakefield · 5560 · Score: 45/100 · Caution
Bute Short-Term Rental (Airbnb) Market
Bute SA Investment Brief
CAUTION — 1.7% gross yield on a $461,617 (pending peer validation) median.
THE MARKET
Bute has compounded at 2.2%/yr over 5 years. Median sits in the $461,617 (pending peer validation) band today. Properties are sitting on market for 30 days (roughly balanced conditions).
- Median house: $461,617 (pending peer validation) | Units: $333,979
- Gross yield: 1.7% | Net yield: 0.2%
- 5yr price CAGR: 2.2%/yr | 3yr forecast: 13.5%/yr
- Population: 389 | Owner-occupier rate: 84% | Affluence: Below Average
- Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline
RENTAL SNAPSHOT
- Vacancy: 1.8% (improving) | Rental demand: High
- Median weekly rent: $150/wk | Days on market: 30 (stable)
- Landlord market — rents likely to keep rising.
SHORT-TERM RENTAL
- Median nightly rate: $468/night | Occupancy: 42%
- Estimated annual STR gross: ~$71,803/yr
- vs long-term rent: $7,800/yr (+821% STR premium — factor in higher management costs)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record.
- Transport: Standard suburban transport access
BULL CASE
If Bute maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $530,860 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Bute pull back 10-15% from $461,617, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.
KEY RISKS
- Distance from CBD may limit long-term capital growth potential
COMPARABLE MARKETS
- Port Lincoln (SA): $580,255 median, 4.7% yield, 15.4% 1yr growth
- Keyneton (SA): $536,907 median, 2.4% yield, 5.3% 1yr growth
- Mount Gambier (SA): $579,262 median, 4.2% yield, 12.5% 1yr growth
THE PLAY
Bute carries elevated risk that outweighs potential returns at current levels. A recovery market combined with low vacancy risk warrants caution. Avoid new acquisitions unless significant discount to median pricing is achievable. Re-evaluate if vacancy falls below 2.5% or annual price growth exceeds 3%.
- Entry range: $415,455 – $507,779
- Minimum gross 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.
Gentrification Index
Growth Forecast
low confidenceBasis: 5yr CAGR 2.2% + 10yr CAGR 3.8%
- +Low rental vacancy (1.8%) — constrained supply
- −Population decline (-0.7%/yr) — demand headwind
- −Moderate supply pipeline (72 approvals)
Suburb Metric Thresholds
Macro Environment
Macro Indicators
Cash Rate
4.35%
▲ 0.25%Cash rate as at 2026-05-06 · Credit data 2026-04
Suburb Supply & Demand
Suburb Supply Pipeline — New Dwelling Approvals
10
2020
12
2021
18
2022
12
2023
20
2025
New dwelling approvals — higher numbers mean more future supply
Socio-Economic Profile
Source: ABS Census 2021SEIFA Index · Postcode 5560
Decile 2 of 10 — High disadvantage
Population
454
Education (IEO)
4/10
Econ. Resources (IER)
3/10
10-Year Investment Projection
Modelled on Bute SA data — rent, capital growth, tax, and depreciation over 10 years.
Pre-filled: $150/wk median rent for Bute. Capital growth and rent increase are editable assumptions.
Nearby Suburbs
Analyse a Property in Bute
Get instant STR rules, granny flat feasibility, rental yield, and full investment strategy comparison for any address in Bute.
Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.