Kensington’s just a few kilometres from the Melbourne CBD, and has been a strong performer historically. But WBP’s Sean Thomson points out that nowadays investors need to be quite selective with their property choices.
“Kensington’s getting hard to buy into, and there are only a few streets that you’d consider. I would suggest buying a two- or maybe three-bedroom period style single-fronted Victorian or Edwardian home with a good floor plan as an investor,” he says. “Stay close to transport and main road access.”
He highlights the area around Macaulay Road as one to target for its excellent real estate and direct access to the city: “Off that area there are some nice well-positioned streets with beautiful period homes,” he explains. “I’d be looking for streets with consistent homes.”
Macaulay Road is also where a large proportion of Kensington’s excellent amenity options lie, including various shopping, eating and drinking establishments. Kensington’s train station is also just a short walk north of Macaulay.
The median price for houses in Kensington is over $650,000 according to RP Data, but for period properties prices head towards the $1m mark – so certainly not one for first time investors.
Its rental market now accounts for around 50% of residents, while the vacancy rate sits at around the 1% mark.
Selling Points: Kensington's housing is primarily medium density, with a mixture of semi detached row or terrace housing, apartments and public housing. Along with a number of well preserved Victorian and Edwardian residences.
Kensington offers a mixed range, from modern contemporary apartment styles to Period style dwellings.
Most common properties: Period style dwellings, As is or renovated.
Top amenities: Mixture of Primary Schools, Churches, recreational and sporting facilities.
Local industry and business: Mixture of retail, cafe's and commercial precinct, fast food stores and supermarkets.
Recent changes: National tenants relocating into retail strip, whilst retaining the Village characteristics.
Best streets: Bellair Street, Woolsley Parade, McCracken Street, McConnell Street & Ormond Street.
Public Transport: Infrastructure, there are three train stations which service Kensington and two bus routes.
Main arteries: CityLink