If you compare the increase in value of investment property in Southbank, 3006 to the rest of Australia, it performed somewhat poorly. The median increase in value, or capital gain property investors experienced for this VIC suburb was -1.58%.
Across a shorter period, Southbank, 3006 has seen a median price increase of -0.44% over the last quarter.
Property investors looking for a bargain in Southbank should be aiming for at least -5.78% off the asking price, which is the average vendor discount being achieved at the moment.
At number 1087 in a list of fastest selling suburbs, Southbank is in the bottom 30% of suburbs in Australia with an average of days on market 95.25 for properties listed there.
Situated 1.00km from the CBD, Southbank is one of Melbourne localities in the postcode 3006.
Concerns about an oversupply of apartments in inner-city Melbourne have been raised frequently in recent months, and the vacancy rate in Southbank could show there is something behind those worries.Full summary
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Concerns about an oversupply of apartments in inner-city Melbourne have been raised frequently in recent months, and the vacancy rate in Southbank could show there is something behind those worries.Close
Just a kilometre from the Melbourne CBD, the riverside suburb currently has a vacancy rate of 11.3%.
Landlords who do manage to find a tenant are getting decent returns, with the average weekly rent of $530 meaning owners are seeing yields of 5%.
Properties aren’t performing too well on the capital growth side of the picture either: the median house price has fallen by 3% over the past year and currently sits at $560,000.
Vendors are also having to offer an average discount of 6% to see sales completed, with apartments spending on average 104 days on the market.