Southbank has had a very poor year for property investment returns compared to the rest of VIC, giving investors a capital gain of -5.00% to date .
When looking at the potential capital gains offered to property investors over the last 3 years, Southbank comes in at number 310th in VIC.
LACK OF BUYER INTEREST may well be the reason that Southbank is offering property investors an average of -4.58. This rate of discount on properties puts Suburb at number 61th in terms of most discounted suburbs in VIC
At number 1018 in a list of fastest selling suburbs, Southbank is in the bottom 40% of suburbs in Australia with an average of days on market 88.06 for properties listed there.
Using the current median advertised rental of $550 and the average annual increase in value of a median property of 1.74%, investors should hope to achieve an overall return of 5.20%
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.