South Melbourne, 3205 ranked 62th in VIC when comparing growth in median property values or capital gain over the last 12 months. South Melbourne is one of 2099 in our list for VIC
A 28.00% growth in median value for property investors in South Melbourne,3205 puts this suburb at number 79th in terms of best performing suburbs in VIC
At number 146th of VIC’s most discounted properties, South Melbourne is in the bottom 30% of the state/territory when listing in order of most discounted to least.
With the median price for a house in South Melbourne being $1408000 and the advertised rent reaching $685 the gross rental yield for property investors calculates out to be 2.53%
South Melbourne has had a very poor year for property investment returns compared to the rest of VIC, giving investors a capital gain of -6.56% to date .
A 1.24% growth in median value for property investors in South Melbourne,3205 puts this suburb at number 353th in terms of best performing suburbs in VIC
When looking to buy, or assessing what properties are really achieving at sale, it's essential for property investors to take into account what discounts are being offered in South Melbourne, 3205. Typically our figures indicate that -5.61% is being offered, which puts this VIC suburb at 564th most discounted overall in Australia.
Often selling an investment property can take time, and in South Melbourne the average time real estate has been on the market is 64.2857 days.
Situated 2.27km from the CBD, South Melbourne is one of Port Phillip (C) localities in the postcode 3205.
Information supplied by:
South Melbourne, VIC
Median House Price: $1,175,000
Current Yield (houses): 3.1%
Average annual growth (houses): 5.0%
Median Unit Price: $591,400
Current Yield (units): 4.7%
Average annual growth (units): 2.2%
With the national decline, South Melbourne had suffered alongside the capital city as auction clearance rates plummeted in the first few months of 2019. However, the suburb’s fortunes have turned around very quickly.
“Auction clearance rates in early 2019 for houses in South Melbourne were down to 50%, but towards the end of 2019 they’d risen back up to over 75%,” reports Jeremy Sheppard, head of research at DSR Data and LocationScore.
This has much to do with property supply levels staying low during the down period, which helped sustain high levels of demand.
“Prices have retracted about 30% over the last two years, presenting what buyers now consider to be bargains. Moreover, supply is tight, with the percentage of stock on market never rising above 1% for the last three years,” he says.
The rental market has been extremely tight as well, causing rent rates to shoot up to the benefit of investors who are able to reap an average return of 4.7% from units.
“Vacancy rates have been consistently low for houses over the last couple of years at around 1%. That has placed pressure on rents which have climbed over 7% in the last year,” Sheppard concludes.