Richmond SA Property Investment

Richmond has compounded at 3.2%/yr over 5 years — a house that cost $1,131,924 in 2021 is worth $1,325,000 today. Properties are sitting on market for 24 days (sellers have the leverage). At the same growth rate, today's median reaches $1,551,009 by 2031.

• Median house: $1,325,000 | Units: $669,961
• Gross yield: 2.5% | Net yield: 1.1%
• 5yr price CAGR: 3.2%/yr | 3yr forecast: 13.5%/yr
• Population: 3,474 | Owner-occupier rate: 55% | Affluence: Above Average

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

• Vacancy: 1.8% (improving) | Rental demand: High
• Median weekly rent: $650/wk | Days on market: 24 (improving)
• Landlord market — rents likely to keep rising.

• Median nightly rate: $434/night | Occupancy: 42%
• Estimated annual STR gross: ~$66,600/yr
• vs long-term rent: $33,800/yr (+97% STR premium — factor in higher management costs)

• North South Corridor (South Australia) (Under Construction)
• Adelaide Metro Train Services Franchise (Under Delivery)
• Transport: Adelaide Parklands Terminal station 1.9km away

If Richmond maintains 3%+ annual growth and vacancy stays below 1.3%, median prices could reach $1,523,750 within 3 years with yields compressing slightly as capital values rise.

A market correction or interest rate shock could see prices in Richmond pull back 10-15% from $1,325,000, with vacancy rising to 3.2% and rental yields softening as tenants gain leverage.

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

• 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
• Salisbury Heights (SA): $947,500 median, 3.4% yield, 14.1% 1yr growth

Richmond offers balanced fundamentals but does not present an urgent buying signal. The market is in a cooling 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: $1,192,500 – $1,457,500
• 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.