If you compare the increase in value of investment property in Balaclava, 3183 to the rest of Australia, it performed very well. The median increase in value, or capital gain property investors experienced for this VIC suburb was 25.00%.
While Balaclava,3183 ranked number 19th in VIC for increase in median house value (annualised) increase, it is ranked 117th over the last 5 years.
A $645 per week rent on the median house gives suburb investors a gross yield of circa 2.85%, without taking into account capital value appreciation, which has been averaging out at 8.82%.
At number 151th in the list of Australian suburbs ordered by increase in median house value over the last year, Balaclava, 3183 is in the top 10% with a property value increase of 18.53% recorded in median house prices.
The five-year average increase in median property values for Balaclava,3183 has given property investors a potential capital gain of 15.49% across each of those five years.
Property buyers and investors in Balaclava 3183 should be seeing an average reduction in asking price of around -4.99% . This means that Balaclava is holding prices well when compared to other suburbs in VIC.
Balaclava is 267th on a list of best yielding suburbs for rents in VIC with a 3.64% return
Just inland from better-known St Kilda, Balaclava doesn’t have the bayside village feel of its coastal neighbour, but it does offer the convenience of a train station. It’s one of APM’s top picks in terms of growth in both sales volumes and prices.Full summary
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Just inland from better-known St Kilda, Balaclava doesn’t have the bayside village feel of its coastal neighbour, but it does offer the convenience of a train station. It’s one of APM’s top picks in terms of growth in both sales volumes and prices.
Affordability however is another matter, with Balaclava's historical growth performance putting its median house price at more than $800,000. This is still cheaper than its neighbours such as St Kilda, Windsor and Caulfield North – where median house prices are between – suggesting Balaclava’s house market has room for growth.
Renters account for just under half of the suburb’s occupants, and its monthly vacancy rate has held firm at around 2% for several years, according to SQM Research.
Amenities are excellent, with scores of shops, cafes and restaurants lining Balaclava Road, and good schools being found in the area. Train times to the city from Balaclava station are around 15 minutes.
All of which has made Balaclava a highly sought after area, says Buyer Solutions’ Janet Spencer. She suggests targeting two- to three-bedroom single fronted Victorian cottages.
“A lot of people are seeking charm, so those old cottages sell very well. And of course they’re not making them anymore, so they’re a good investment from a supply and demand point of view,” she says.
And in terms of street selection, she picks out Talbot and Melby Avenues, on the cusp of Balaclava and St Kilda East, as two to watch: “They’re very good streets with a little almost secret park at the end – Greenmeadows Gardens.”