Paracombe SA Property Investment

Tea Tree Gully · 5132 · Score: 64/100 · Hold

Median House Price
$1.41M
Rental Yield
1.0%
Vacancy Rate
0.8%
Median Weekly Rent
$263/wk
Median Unit Price
$925K
Population
435
Days on Market
20 days
Annual Growth
10.7%

Paracombe Short-Term Rental (Airbnb) Market

Avg Nightly Rate
$577.81/night
Occupancy Rate
42%
Est. Annual Revenue
$89K
AI Investment Analysis

Paracombe SA Investment Brief

HOLD1.0% gross yield on a $1,411,459 (pending peer validation) median.

THE MARKET

Paracombe has compounded at 3.2%/yr over 5 years. Median sits in the $1,411,459 (pending peer validation) band today. Properties are sitting on market for 20 days (sellers have the leverage).

  • Median house: $1,411,459 (pending peer validation) | Units: $924,753
  • Gross yield: 1.0% | Net yield: -0.5%
  • 5yr price CAGR: 3.2%/yr | 3yr forecast: 13.5%/yr
  • Population: 435 | Owner-occupier rate: 90% | Affluence: Very High
  • Supply pipeline: Low — Price growth outpacing new supply, limited development pipeline

RENTAL SNAPSHOT

  • Vacancy: 0.8% (improving) | Rental demand: Very High
  • Median weekly rent: $263/wk | Days on market: 20 (improving)
  • Landlord market — rents likely to keep rising.

SHORT-TERM RENTAL

  • Median nightly rate: $578/night | Occupancy: 42%
  • Estimated annual STR gross: ~$88,578/yr
  • vs long-term rent: $13,676/yr (+548% STR premium — factor in higher management costs)

INFRASTRUCTURE & CATALYSTS

  • Adelaide Metro Train Services Franchise (Under Delivery)
  • North South Corridor (South Australia) (Under Construction)
  • Transport: Chidda station 14.8km away

BULL CASE

If Paracombe maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $1,623,178 within 3 years with yields compressing slightly as capital values rise.

BEAR CASE

A market correction or interest rate shock could see prices in Paracombe pull back 10-15% from $1,411,459, with vacancy rising to 1.4% and rental yields softening as tenants gain leverage.

KEY RISKS

  • Bushfire risk: HIGH (planning_overlay) — confirm BAL rating and any bushfire overlay obligations for the property

COMPARABLE MARKETS

  • Kilburn (SA): $1,093,556 median, 2.8% yield, 31.9% 1yr growth
  • Woodville North (SA): $1,130,000 median, 2.9% yield, 1.9% 1yr growth
  • Enfield (SA): $990,000 median, 3.4% yield, 16.0% 1yr growth

THE PLAY

Paracombe offers balanced fundamentals but does not present an urgent buying signal. The market is in a recovery phase with low 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: $1,270,313$1,552,605
  • 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

Pre-gentrification3.0/10
High SEIFA decile — already upgraded or established affluent area
Inner/middle ring location (18.2km to CBD) — high gentrification corridor
Active development pipeline (2498 approvals) — supply attracting new residents

Growth Forecast

high confidence
1yr Forecast
4.0%
p.a.
2yr Forecast
3.6%
p.a.
5yr Forecast
3.2%
p.a.

Basis: 5yr CAGR 3.2% + 10yr CAGR 5.0%

Growth drivers
  • +Very tight rental market (vacancy 0.8%) — upward price pressure
  • +Active market (20 days avg)
Headwinds
  • High supply pipeline (2498 new approvals) — may cap price growth

Suburb Metric Thresholds

8 green2 yellow6 red
Rental Vacancy Rate
0.8 high impact
Days on Market
20 high impact
Weekly Rent (house)
263 medium impact
5yr Price CAGR
3.23 high impact
10yr Price CAGR
5.03 high impact
1yr Price Growth
10.68 medium impact
Population Growth
0.42 high impact
Median Household Income
2092 medium impact
Unemployment Rate
1.8 medium impact
Public Transport Score
0 medium impact
School Zone Quality
7.2 medium impact
Distance to CBD
18.23 medium impact
SEIFA Advantage/Disadvantage
9 medium impact
Owner Occupier Rate
90.5 medium impact
Gross Rental Yield (%)
0.97 high impact
Net Rental Yield (%)
-0.53 high impact

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

381

2020

594

2021

512

2022

479

2023

532

2025

New dwelling approvals — higher numbers mean more future supply

Socio-Economic Profile

Source: ABS Census 2021

SEIFA Index · Postcode 5132

Most disadvantagedLeast disadvantaged

Decile 10 of 10 — Low disadvantage

Population

435

Education (IEO)

9/10

Econ. Resources (IER)

10/10

10-Year Investment Projection

Modelled on Paracombe SA data — rent, capital growth, tax, and depreciation over 10 years.

Pre-filled: $263/wk median rent for Paracombe. Capital growth and rent increase are editable assumptions.

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Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.