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%
South Melbourne has a very strong commercial market, with local industries centred around media, design and marketing.
Information supplied by:
0412 566 962
03 9699 7500
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.