Suburb Profile Report for South Melbourne VIC (3205)

South Melbourne House: Median price $1,500,000, Annual capital growth 6.35%, Number of sales 91, Weekly median advertised rent $680

South Melbourne Unit: Median price $582,500, Annual capital growth 1.01%, Number of sales 143, Weekly median advertised rent $530

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

Source: Monthly data update for Jul 2020 as supplied by CoreLogic. Data is reported to the period ending Apr 2020. Please note that property sales data is routinely updated, so may change retrospectively.

  • Expert Report
  • House Report
  • Unit Report

South Melbourne has had a A very good year for property investment returns compared to the rest of VIC, giving investors a capital gain of 27.39% to date .

Over the longer term, South Melbourne has seen property prices show investors a 7.14% return over the last 3 years. This is an improvement over the last 12 months

Using the current median advertised rental of $680 and the average annual increase in value of a median property of 6.35%, investors should hope to achieve an overall return of 2.36%

Over the last year, property investments in South Melbourne, 3205 have given investors a capital gain of 2.19%. This compares badly with the 6.63% for VIC as a whole.

South Melbourne,3205 has offered an average of 2.19% return per annum in house price rises to property investors over the last three years.

When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in South Melbourne, 3205. Typically our figures indicate that -5.24% is being offered, which puts this VIC suburb at 607th most discounted overall in Australia.

South Melbourne, 3205’s gross rental yield is 4.73%

Information supplied by:




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South Melbourne, VIC

Median House Price: $1,175,000

Current Yield (houses): 3.1%

Average annual growth (houses): 5.0%

Median Unit Price: $591,400

Current Yield (units): 4.7%

Average annual growth (units): 2.2%

With the national decline, South Melbourne had suffered alongside the capital city as auction clearance rates plummeted in the first few months of 2019. However, the suburb’s fortunes have turned around very quickly.

“Auction clearance rates in early 2019 for houses in South Melbourne were down to 50%, but towards the end of 2019 they’d risen back up to over 75%,” reports Jeremy Sheppard, head of research at DSR Data and LocationScore.

This has much to do with property supply levels staying low during the down period, which helped sustain high levels of demand.

“Prices have retracted about 30% over the last two years, presenting what buyers now consider to be bargains. Moreover, supply is tight, with the percentage of stock on market never rising above 1% for the last three years,” he says.

The rental market has been extremely tight as well, causing rent rates to shoot up to the benefit of investors who are able to reap an average return of 4.7% from units.

“Vacancy rates have been consistently low for houses over the last couple of years at around 1%. That has placed pressure on rents which have climbed over 7% in the last year,” Sheppard concludes.

Metrics i HOUSE UNIT
$1,500,000 $582,500
10.29% 0.43%
27.39% 2.19%
6.35% 1.01%
$680 $530
91 143
2.36% 4.73%
54.2413793103448 59.8181818181818

Source: Monthly data update for Jul 2020 as supplied by CoreLogic. Data is reported to the period ending Apr 2020. Please note that property sales data is routinely updated, so may change retrospectively.

DSR Score for property investment : Above average (H), Above average (U)
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Demographics
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
    Occupation
    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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