South Grafton (NSW 2460) in Focus 2026: Is It a Good Investment? R-Score 96/100, 5.7% Yield & Best Streets

Market Classification: High-Yield & Momentum Sweet Spot · R-Score: 96/100 (National Rank #681 of 15,286) · Street Average: 29/100 across 123 streets.

In a 6%+ interest rate environment, most Australian suburbs force investors to choose between capital growth momentum and holding cashflow. South Grafton is one of the rare markets in NSW currently delivering both: a 96/100 R-Score paired with a 5.7% gross rental yield at a $480,000 median price. That yield profile preserves bank borrowing serviceability so investors can sequence their next acquisition without a punishing cashflow deficit.

“I would not let the 5.7% gross yield do all the selling here. With only 19 of 92 streets scoring 75 or higher, the practical job is identifying the better pockets first, then checking whether the projected rent can absorb the stated negative $38 weekly cashflow.”

Looking for the live, monthly-updated numbers? The South Grafton (NSW) suburb profile tracks the current median house price, rent, vacancy and R-Score, and the South Grafton street-by-street scores rank every street. This article is our investment analysis of what those numbers mean.

Below is our full October 2026 quantitative and street-level breakdown for South Grafton (NSW 2460), combining 36 months of settled price and rental history from our Aurora research warehouse, council-level supply and employment data for Clarence Valley (NSW), and block-by-block ABS 2021 Census SA1 tenure and yield rankings across 4,115 residential addresses.

1. South Grafton (NSW) 3-Year Market Trajectory & 27-Indicator R-Score (October 2026)

Over the past 12 months, South Grafton’s median house price moved +7.9% (from $445,000 to $480,000), bringing its 3-year cumulative price movement to +15.7% (from $415,000 three years ago). On the rental side, median weekly asking rents moved +5% over the past year to $525/wk (+24.1% over 36 months), equating to a 5.7% gross rental yield. Compared with 12 months ago—when South Grafton carried an R-Score of 94/100—its current composite R-Score of 96/100 represents a +2-point shift in underlying market pressure.

Indicator / R-Score Pillar	South Grafton (NSW) Current	12-Month / 36-Month Context
Composite Suburb R-Score	96 / 100	Ranked #681 of 15,286 suburbs (was 94/100 12m ago)
Median House Price	$480,000	12m change: +7.9% · 36m change: +15.7%
Median Weekly Rent & Gross Yield	$525/wk (5.7%)	12m rent change: +5% · 36m rent change: +24.1%
Rental Vacancy & Days on Market	1.4% vacancy	Median selling time: 66 days on market (1.5% vacancy is the tight-market line)
Pillar 1: Buyer Demand	30 / 100	Measures days-on-market compression, vendor discounting & sales velocity
Pillar 2: Supply & Ownership	32 / 100	Measures stock on market, building approvals vs stock & owner-occupier share
Pillar 3: Price Momentum	73 / 100	Measures short/medium-term price velocity vs Clarence Valley & NSW
Pillar 4: Yield Pressure	59 / 100	Measures gross rental yield, rent trajectory & vacancy compression

2. The “Two-Speed Suburb” Test: Best & Worst Streets in South Grafton (NSW)

Why do two 4-bedroom houses in South Grafton achieve completely different bank valuations and tenant quality? Because suburb medians blend every pocket together. When we map all 4,115 addresses across 123 streets in South Grafton through G-NAF to their ABS 2021 Census SA1 blocks, the suburb splits into three distinct tiers:

• Strong Street Profile (Score 75–100): 19 streets (21% of scored streets) pass both ABS Census tenure tests (owner-occupiers >65% and public housing ≤5%) plus at least one—or both—of the South Grafton rent and yield benchmarks.
• Mid / Mixed Street Profile (Score 50–74): 8 streets pass the core owner-occupier and public-housing thresholds but sit below the suburb median on weekly rent or yield.
• Weaker / Caution Street Profile (Score 0–25): 65 streets fail one or both census tenure thresholds—meaning either owner-occupation sits at or below 65% or state/community public housing exceeds 5% on those specific SA1 blocks.

Top 5 Highest-Scoring Streets in South Grafton (NSW)

These streets sit in SA1 census blocks with high homeowner pride of ownership, minimal social housing concentration, and strong block-level rents (inspect all 123 streets in South Grafton):

Top Street in South Grafton	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Rent & Yield
#1 Moorhead Drive	100/100	44	69%	1.6%	$578/wk (6%)
#2 Johnson Street	100/100	21	69%	1.6%	$578/wk (6%)
#3 Avery Street	100/100	14	69%	1.6%	$578/wk (6%)
#4 O'Brien Place	100/100	12	69%	1.6%	$578/wk (6%)
#5 Swallow Road	75/100	73	76%	0%	$610/wk (5.3%)

Streets Where Block-Level Tenure Trails the South Grafton Average

By contrast, the streets below run through SA1 census blocks that fail one or more of our tenure or rental tests. A lower Street Score is not a judgement of any individual house, but it highlights where higher renter turnover or public housing concentration exists within South Grafton:

Caution Street Sample	Street Score	Addresses	Owner-Occupiers	Public Housing	SA1 Median Rent
Flaherty Street	0/100	48	39%	28%	$460/wk
Lee Crescent	0/100	21	39%	28%	$460/wk
Maxwell Avenue	0/100	46	42%	26.5%	$458/wk

3. Economic & Supply Drivers in Clarence Valley Council (New South Wales)

South Grafton sits within the Clarence Valley Local Government Area, which has a residential population of approximately 56,874 (+3.7% population movement over the past 3 years) and 24,929 total dwellings. Three council-level fundamentals shape South Grafton’s medium-term outlook:

• Local Employment Diversity (ABS Census): The largest employment sectors across Clarence Valley are Health Care and Social Assistance (16%), Retail Trade (12%), Accommodation and Food Services (10%), Education and Training (9%). Multi-sector employment reduces reliance on any single employer or commodity cycle.
• New Building Approvals vs. Existing Stock: Over the latest 12-month financial year, Clarence Valley approved 1.6% new dwelling stock (~383.266 dwellings). Because annual additions sit under 1.8% of stock, incoming supply is constrained relative to tenant and buyer demand.
• Tracked Infrastructure Pipeline: Clarence Valley currently has $264 million in tracked major infrastructure projects (placing it in the 14th percentile of Australian councils).

4. Worked Cashflow, Deposit & 80% LVR Stress-Test for South Grafton (October 2026)

What does it actually cost to acquire and hold a typical house in South Grafton at today’s median price of $480,000 and median rent of $525/wk? Below is the baseline 80% Loan-to-Value Ratio (LVR) model we use to stress-test serviceability before shortlisting a property:

Cashflow & Capital Item	South Grafton Worked Figure	Assumptions & Notes
Purchase Price (Suburb Median)	$480,000	Settled house median as of October 2026
20% Deposit + Est. Stamp Duty & Costs	$119,040	$96,000 deposit (80% LVR) + ~$23,040 stamp duty, legal & inspection allowance (can be funded via usable home equity)
80% LVR Loan Amount	$384,000	Standard no-LMI investor loan threshold
Gross Annual Rental Income	$27,300/yr ($525/wk)	5.7% gross rental yield before vacancies and expenses
Est. Annual Interest + Operating Costs	$29,280/yr	Assumes 6.25% interest-only ($24,000/yr) + ~1.1% for council rates, insurance & property management ($5,280/yr)
Pre-Tax Weekly Cashflow Position	-$38/wk top-up	Before tax deductions / depreciation (confirm post-tax position with your accountant)

5. Who Should Buy in South Grafton—And 3 Rules Before You Make an Offer

Rare Convergence of 5%+ Gross Rental Yield and Top-Quartile Demand. Based on our October 2026 data, South Grafton is best suited to first-time property investors, homeowners unlocking $150k–$250k in equity, and second/third property buyers who need strong rental yield (5.7%) to preserve bank borrowing capacity while capturing capital growth.

1. Never Buy Blind on the Suburb Median: In South Grafton, 65 streets score below 50/100 on our census tenure and yield tests. Always run the exact street through the South Grafton Street Score Hub and target the 19 streets scoring 75–100/100.
2. Check Lot-Level Overlays (Flood, Bushfire, Slope & Easements): Even on a 100/100 streetlike Moorhead Drive, individual lots can carry overland flow paths, steep gradients, or sewer easements that restrict granny-flat additions or spike insurance premiums.
3. Price Against Street-Matched Settled Comparables: Do not let a selling agent justify an asking price on a 25/100 street using comparable sales from a 100/100 street. Compare settled sales within the same SA1 Street Score band.