St Kilda has had a A very good year for property investment returns compared to the rest of VIC, giving investors a capital gain of 34.62% to date .
Across a shorter period, St Kilda, 3182 has seen a median price increase of 6.67% over the last quarter.
Using the current median advertised rental of $527.5 and the average annual increase in value of a median property of 7.55%, investors should hope to achieve an overall return of 1.96%
VIC has seen average median house prices change by 6.72% which means that St Kilda, 3182 has done well for property investors by showing a capital gain of 6.10% over the last year
While St Kilda,3182 ranked number 235th in VIC for increase in median house value (annualised) increase, it is ranked 182th over the last 5 years.
Sellers are offering property buyers an average discount of -0.36% to buyers in St Kilda at the moment, which is less than average for the rest of VIC.
In the last year 345 properties changed hands in St Kilda, which puts it as the 11th most active market in VIC when comparing the number of sales per suburb.
A $410 per week rent on the median house gives suburb investors a gross yield of circa 3.77%, without taking into account capital value appreciation, which has been averaging out at 5.03%.
Next to Balaclava, St Kilda is a popular lifestyle suburb with strong historical capital growth rates that’s right on the bay, but also within 10km of Melbourne’s CBD. Apartments dominate the market, and WBP’s Sean Thomson suggests that it’s this section of the market that investors will want to target. Full summary
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Next to Balaclava, St Kilda is a popular lifestyle suburb with strong historical capital growth rates that’s right on the bay, but also within 10km of Melbourne’s CBD. Apartments dominate the market, and WBP’s Sean Thomson suggests that it’s this section of the market that investors will want to target.
“For an investor, with the way that lifestyles are changing in those areas, I’d suggest looking at one- or two-bedroom apartments and staying in boutique style blocks of six to 20 apartments and where the land value is quite substantial,” he says.
“Within those boutique blocks, look for something that is unique,” advises Thomson. “This could be the position within the block, the floor plan or the condition of the property.”
He adds that modern high rise apartments tend to be quite small, and that the body corporate fees in high rises can be quite high.
“There could be lifts, cleaning, swimming pools and services that as an investor you don’t need to be forking out for. The land component per unit is also small compared to a boutique development.”
He also suggests looking at the more picturesque St Kilda and St Kilda West, rather than heading inland to St Kilda East.
“St Kilda West backs up to Middle Park, and you’re in close proximity to Fitzroy Street – one of the main streets in St Kilda where a lot of cafés, restaurants and amenities are – and the Bay area,” he says. “It’s got the bay on one side, and parkland on the other. It’s a stunning location with easy access to the city by light rail.”