Suburb Profile Report for South Melbourne VIC (3205)

South Melbourne House: Median price $1,200,500, Annual capital growth 4.90%, Number of sales 93, Weekly median advertised rent $660

South Melbourne Unit: Median price $615,000, Annual capital growth 2.51%, Number of sales 118, Weekly median advertised rent $525

  • House
  • Unit
Source: CoreLogic RP Data
  • Median price
  • Number of sales

Source: Monthly data update for May 2019 as supplied by CoreLogic. Data is reported to the period ending Feb 2019. Please note that property sales data is routinely updated, so may change retrospectively.

  • Expert Report
  • House Report
  • Unit Report

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%.

Jay Pavey Information supplied by:

Jay Pavey
Lemon Baxter

M 0412 566 962
O 03 9699 7500

W lemonbaxter.com.au
E jay@lemonbaxter.com.au

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.  

Metrics i HOUSE UNIT
$1,200,500 $615,000
-0.04% -1.60%
-21.28% 3.36%
4.90% 2.51%
$660 $525
93 118
2.86% 4.44%
54.29032 75.11539

Source: Monthly data update for May 2019 as supplied by CoreLogic. Data is reported to the period ending Feb 2019. Please note that property sales data is routinely updated, so may change retrospectively.

DSR Score for property investment : Good (H), Good (U)
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Demographics
Total population 9317
Median household income ($/weekly) 1668
Median age of persons 37
Median housing loan repayment ($/monthly) 2500
Average household size 2
  • Census Count Percent(%)
    20-24 years 706 7.6
    25-34 years 2131 22.9
    35-44 years 1733 18.6
    45-54 years 1170 12.6
    55-64 years 1000 10.7
    Others 2578 27.7
    Age Group
    Census Count Percent(%)
    Not Married 3507 49.7
    Registered Married 2418 34.3
    Defacto Relationship 1132 16.0
    Social Marital Status
  • Census Count Percent(%)
    Australia 5444 63.6
    Iraq 210 2.5
    Papua New Guinea 290 3.4
    United Kingdom 538 6.3
    Other 646 7.5
    Others 1434 16.7
    Country of Birth
    Census Count Percent(%)
    Buddhism 252 3.1
    Christianity 4322 53.2
    Islam 183 2.3
    Judaism 230 2.8
    No Religion 2966 36.5
    Others 170 2.1
    Religious Affiliation
  • Census Count Percent(%)
    $300-$399 277 7.4
    $400-$599 281 7.5
    $1,500-$1,999 390 10.4
    $2,500-$2,999 590 15.7
    $4,000 or more 372 9.9
    Others 1857 49.3
    Gross Household Income (Weekly)
    Census Count Percent(%)
    Employed, worked full-time 3590 47.7
    Not in the labour force 2266 30.1
    Employed, worked part-time 1140 15.1
    Unemployed, looking for work 267 3.5
    Employed, away from work 263 3.5
    Person Characteristics
  • Census Count Percent(%)
    Managers 998 20.0
    Professionals 2057 41.2
    Community & personal service workers 327 6.5
    Clerical & administrative workers 656 13.1
    Sales 366 7.3
    Others 593 11.9
    Occupation
    Census Count Percent(%)
    Pre-school 137 8.1
    Infants/Primary 380 22.4
    Secondary 259 15.3
    Technical or Further Educational Institution 175 10.3
    University or other Tertiary Institutions 655 38.6
    Others 92 5.4
    Type of Educational Institution Attending
  • Census Count Percent(%)
    Flat, unit or apartment 3584 43.6
    Semi-detached, row or terrace house, townhouse 2705 32.9
    Separate house 1795 21.8
    House or flat attached to a shop, office 138 1.7
    Caravan, cabin, houseboat 0 0.0
    Others 0 0.0
    Dwelling Structure
    Census Count Percent(%)
    Rented 2182 53.9
    Being purchased 976 24.1
    Fully owned 871 21.5
    Other tenure type 21 0.5
    Tenure Type
Census 2011, ABS
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