If you compare the increase in value of investment property in Flemington, 3031 to the rest of Australia, it performed around average. The median increase in value, or capital gain property investors experienced for this VIC suburb was 11.01%.
When looking at the potential capital gains offered to property investors over the last 3 years, Flemington comes in at number 421th in VIC.
With the median price for a house in Flemington being $1132000 and the advertised rent reaching $520 the gross rental yield for property investors calculates out to be 2.39%
Flemington has had a quite poor year for property investment returns compared to the rest of VIC, giving investors a capital gain of 0.95% to date .
If we look at median property appreciation over just the last three months, Flemington has given property investors a paper return of 8.93%. This puts Suburb as 32 on a list of fastest fasting appreciating suburbs in VIC
Sellers are offering property buyers an average discount of -3.41% to buyers in Flemington at the moment, which is less than average for the rest of VIC.
Often selling an investment property can take time, and in Flemington the average time real estate has been on the market is 40.04 days.
Flemington, 3031’s gross rental yield is 3.28%
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WBP’s Sean Thomson suggests that it’s becoming hard to buy well in Flemington’s house market, as prices have gone up so substantially in recent times. “It’s become a very popular area. If you can get into the area, I’d be concentrating on the apartment market,” he says.
Units have been more than holding their own compared to houses, and their median price offers an entry point that's realistic on an investor budget.
“I would be concentrating on either one- or two-bedroom apartments,” says Thomson. “As an investor I’d stay away from three-bedrooms. With the investor market, if you buy a one- or two-bedroom apartment, in a 10 to 15-year time period you’re going to have better growth and more opportunity with buyers in the long-term. The three-bedroom market is mainly homebuyers rather than homebuyers and investors.”
He adds that Flemington, like a lot of Melbourne’s popular inner-ring suburbs, offers the kind of lifestyle and amenities that the city’s urban go-getters look for.
“The village lifestyle is becoming very important, where people eat out for breakfast lunch and dinner. So if you’re close to 24-7 wining and dining, but also parks and public transport then your property’s going to become more and more popular as time goes on.”
And with half of Flemington’s population being renters, according to ABS data, it appears that the local demographics support Thomson’s thinking.