Giving property investors a a poor capital gain of -12.04% for the last year, South Melbourne, 3205 is the 3952th highest performer in Australia in this respect.
Over the longer term, South Melbourne has seen property prices show investors a 5.70% return over the last 3 years. This is worse than over the last 12 months
Our latest figures would indicate that property sellers in South Melbourne are currently offering property investors an average price cut of -6.43% below the asking price at the moment.
Using the current median advertised rental of $660 and the average annual increase in value of a median property of 5.02%, investors should hope to achieve an overall return of 2.76%
South Melbourne is an average performer in VIC when comparing median price capital growth over the last year. South Melbourne gave property investors a average capital gain figure when compared to the rest of the state, with 4.16%.
Data for the last quarter indicates that, in the short term at least, the capital value growth rate for property investors in South Melbourne has increased when compared to the 5 year average annual rate.
State is the 7th most discounted Australian state or territory in this month’s figures with an average Vendor Discount of -5.13% offered to property buyers. Sellers in South Melbourne itself are offering an average vendor discount of -4.78% to real estate investors.
At number 818 in a list of fastest selling suburbs, South Melbourne is in the bottom 40% of suburbs in Australia with an average of days on market 73.62 for properties listed there.
A $520 per week rent on the median house gives suburb investors a gross yield of circa 4.41%, without taking into account capital value appreciation, which has been averaging out at 2.55%.
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Selling points: Strong vacancy rates for investors and unique smaller style space for owner occupiers.
Most sought after properties: Office warehouses with an open plan environment, or exposed ceilings and concrete are very attractive in this market. In relation to St Kilda Road, high-rise buildings, well fitted, with space are a must. The comparable low rents versus all other Australian building markets are also very attractive.
Most common properties: Renovated two-three level commercial building and unique office warehouses.
Top amenities: Clarendon St shopping area and South Melbourne market are prominent. Two new major developments including the Spotlight complex on Cecil St and Coles development on Clarendon Street.
Local industry and business: AusStereo, Spotlight and Mitchell’s and Partners are the large tenants in the area. Main industries include media, advertising, marketing, design, architects and developers.
Best streets: York Street (right in the hub of the district) and Albert Road (views over the lake and great access).
Public transport: Although it doesn’t have a train station it has two trams, one light rail and bus services.
Main arteries: Great access to all Melbourne major arterial roads and freeways, great access to the CBD only minutes away. Easy access to Port Philip Bay and Albert Park Lake.