Suburb Profile Report for South Melbourne VIC (3205)

South Melbourne House: Median price $1,275,000, Annual capital growth 8.82%, Number of sales 98, Weekly median advertised rent $560

South Melbourne Unit: Median price $615,000, Annual capital growth 5.12%, Number of sales 129, Weekly median advertised rent $495

  • House
  • Unit
Source: CoreLogic RP Data
  • Median price
  • Number of sales

Source: CoreLogic

  • House Report
  • Unit Report
  • Expert Report

South Melbourne has had a quite poor year for property investment returns compared to the rest of VIC, giving investors a capital gain of 6.25% to date .

Data for the last quarter indicates that, in the short term at least, the capital value growth rate for property investors in South Melbourne has increased when compared to the 5 year average annual rate.

Property investors looking for a bargain in South Melbourne should be aiming for at least -7.34% off the asking price, which is the average vendor discount being achieved at the moment.

In the last year 98 properties changed hands in South Melbourne, which puts it as the 266th most active market in VIC when comparing the number of sales per suburb.

Advertised rents are around the $560 mark per week – giving a return of 2.28% based on the median price in Suburb

Giving property investors a an unimpressive capital gain of -3.61% for the last year, South Melbourne, 3205 is the 1365th highest performer in Australia in this respect.

South Melbourne,3205 was ranked 1522 in Australia by increase in median property value over the quarter.

The most recent median price for South Melbourne is $615000, with sellers offering an average of -3.68% off the asking price.

Using the current median advertised rental of $495 and the average annual increase in value of a median property of 5.12%, investors should hope to achieve an overall return of 4.19%

Jay Pavey Information supplied by:

Jay Pavey
Lemon Baxter

M 0412 566 962
O 03 9699 7500

South Melbourne has a very strong commercial market, with local industries centred around media, design and marketing.
Attractive vacancy rates and rental yields await investors looking to enter the commercial market, with renovated two-three level buildings and office warehouses being the most common properties.
Trendy office warehouses with an open plan environment are the most sought after, while the central location makes it attractive to professional tenants.
The area is serviced reasonably well by public transport and the suburb enjoys great access to all of Melbourne's major arterial roads.Full summary

Selling points: Strong vacancy rates for investors and unique smaller style space for owner occupiers.

Most sought after properties: Office warehouses with an open plan environment, or exposed ceilings and concrete are very attractive in this market. In relation to St Kilda Road, high-rise buildings, well fitted, with space are a must. The comparable low rents versus all other Australian building markets are also very attractive.

Most common properties: Renovated two-three level commercial building and unique office warehouses.

Top amenities: Clarendon St shopping area and South Melbourne market are prominent. Two new major developments including the Spotlight complex on Cecil St and Coles development on Clarendon Street.

Local industry and business: AusStereo, Spotlight and Mitchell’s and Partners are the large tenants in the area. Main industries include media, advertising, marketing, design, architects and developers.

Best streets: York Street (right in the hub of the district) and Albert Road (views over the lake and great access).

Public transport: Although it doesn’t have a train station it has two trams, one light rail and bus services.

Main arteries: Great access to all Melbourne major arterial roads and freeways, great access to the CBD only minutes away.  Easy access to Port Philip Bay and Albert Park Lake.  

$1,275,000 $615,000
-0.39% -5.38%
6.25% -3.61%
8.82% 5.12%
$560 $495
98 129
2.28% 4.19%
83.23 72.94

Source: CoreLogic

DSR Score for property investment : Above average (H), Above average (U)
Find a mortgage broker in South Melbourne VIC
Total population 9317
Median household income ($/weekly) 1668
Median age of persons 37
Median housing loan repayment ($/monthly) 2500
Average household size 2
  • Census Count Percent(%)
    20-24 years 706 7.6
    25-34 years 2131 22.9
    35-44 years 1733 18.6
    45-54 years 1170 12.6
    55-64 years 1000 10.7
    Others 2578 27.7
    Age Group
    Census Count Percent(%)
    Not Married 3507 49.7
    Registered Married 2418 34.3
    Defacto Relationship 1132 16.0
    Social Marital Status
  • Census Count Percent(%)
    Australia 5444 63.6
    Iraq 210 2.5
    Papua New Guinea 290 3.4
    United Kingdom 538 6.3
    Other 646 7.5
    Others 1434 16.7
    Country of Birth
    Census Count Percent(%)
    Buddhism 252 3.1
    Christianity 4322 53.2
    Islam 183 2.3
    Judaism 230 2.8
    No Religion 2966 36.5
    Others 170 2.1
    Religious Affiliation
  • Census Count Percent(%)
    $300-$399 277 7.4
    $400-$599 281 7.5
    $1,500-$1,999 390 10.4
    $2,500-$2,999 590 15.7
    $4,000 or more 372 9.9
    Others 1857 49.3
    Gross Household Income (Weekly)
    Census Count Percent(%)
    Employed, worked full-time 3590 47.7
    Not in the labour force 2266 30.1
    Employed, worked part-time 1140 15.1
    Unemployed, looking for work 267 3.5
    Employed, away from work 263 3.5
    Person Characteristics
  • Census Count Percent(%)
    Managers 998 20.0
    Professionals 2057 41.2
    Community & personal service workers 327 6.5
    Clerical & administrative workers 656 13.1
    Sales 366 7.3
    Others 593 11.9
    Census Count Percent(%)
    Pre-school 137 8.1
    Infants/Primary 380 22.4
    Secondary 259 15.3
    Technical or Further Educational Institution 175 10.3
    University or other Tertiary Institutions 655 38.6
    Others 92 5.4
    Type of Educational Institution Attending
  • Census Count Percent(%)
    Flat, unit or apartment 3584 43.6
    Semi-detached, row or terrace house, townhouse 2705 32.9
    Separate house 1795 21.8
    House or flat attached to a shop, office 138 1.7
    Caravan, cabin, houseboat 0 0.0
    Others 0 0.0
    Dwelling Structure
    Census Count Percent(%)
    Rented 2182 53.9
    Being purchased 976 24.1
    Fully owned 871 21.5
    Other tenure type 21 0.5
    Tenure Type
Census 2011, ABS
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