Fitzroy SA Property Investment

Fitzroy has compounded at 3.7%/yr over 5 years — a house that cost $1,801,192 in 2021 is worth $2,160,000 today. Properties are sitting on market for 22 days (sellers have the leverage). At the same growth rate, today's median reaches $2,590,285 by 2031.

• Median house: $2,160,000 | Units: $706,253
• Gross yield: 1.4% | Net yield: -0.1%
• 5yr price CAGR: 3.7%/yr | 3yr forecast: 13.5%/yr
• Population: 783 | Owner-occupier rate: 62% | Affluence: Very High

• Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

• Vacancy: 1.6% (improving) | Rental demand: High
• Median weekly rent: $578/wk | Days on market: 22 (improving)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $469/night | Occupancy: 42%
• Estimated annual STR gross: ~$71,859/yr
• vs long-term rent: $30,056/yr (+139% STR premium — factor in higher management costs)

• Adelaide Metro Train Services Franchise (Under Delivery)
• North South Corridor (South Australia) (Under Construction)
• Transport: Ovingham station 0.5km away

If Fitzroy maintains 3%+ annual growth and vacancy stays below 1.1%, median prices could reach $2,484,000 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Fitzroy pull back 10-15% from $2,160,000, with vacancy rising to 2.9% and rental yields softening as tenants gain leverage.

• Bushfire risk: HIGH (planning_overlay) — confirm BAL rating and any bushfire overlay obligations for the property
• - Premium price point limits buyer pool and increases interest rate sensitivity

• Aldgate (SA): $1,625,000 median, 2.3% yield, 18.1% 1yr growth
• Norton Summit (SA): $1,671,779 median, 1.2% yield, 5.8% 1yr growth
• Glen Osmond (SA): $2,034,000 median, 2.6% yield, -6.0% 1yr growth

Fitzroy presents a compelling investment opportunity. The combination of solid fundamentals and high rental demand supports entry at current price levels. Proceed with due diligence on specific properties. Target gross yields above 1.4% and prioritise properties with value-add potential. Consider timing entry around the current recovery phase of the market cycle.

• Entry range: $1,944,000 – $2,376,000
• 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.