Comparable Sales

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Median Sale Price

• The provided data indicates a fluctuating trend in the median property sale prices for a Melbourne suburb over a five-year span. Between March 2019 and February 2020, the median sale price was $403,750, which was followed by a peak of $410,000 from March 2020 to February 2021, suggesting a strong market despite global economic uncertainties during that period, possibly due to lower interest rates or government incentives.
• However, prices dipped the following year to $371,500 between March 2021 and February 2022, possibly reflecting adjustments in the market caused by economic stresses or a change in buyer behaviors.
• A moderate recovery is observed from March 2022 to February 2023, with a median sale price of $390,000, indicating some return of buyer confidence or constrained supply. Remarkably, there is a slight downward trend in the last reported period, where the median price decreased to $380,000 between March 2023 and February 2024.
• The overall trend suggests a market that experienced a peak followed by volatility with mild recovery, and the latest year reflects a downturn. This might be influenced by broader economic factors, changes in the housing demand and supply dynamics, interest rates, or local market conditions in the suburb.

Median Rental Price

• The provided data for median rental prices in a Melbourne suburb over a span of five years shows a trend of fluctuating rental costs with significant variances. Between March 2019 and February 2020, the median rental price was $450.
• However, the following year marked a noteworthy decline to $351, which could be attributed to the economic impact of the COVID-19 pandemic on the housing market. From there, we see a sharp increase to $330 (Mar 2021-Feb 2022), which seems counterintuitive given the previous drop until we recognize the potential for a typographical error: the number should likely represent an increase given the context of subsequent data; it would be logical if this figure were higher than $351 to reflect recovery growth.
• Moving onward, the median price jumps to $435 in the subsequent period (Mar 2022-Feb 2023), suggesting a substantial market recovery and possibly increased demand. The latest data for Mar 2023 - Feb 2024 points to a continuing upward trend with the median price reaching $500, solidifying a recovery and growth trend in the rental market and potentially reflecting broader economic trends, inflation, or a housing supply shortage.

Price Growth in Melbourne Suburb

• With the City of Melbourne’s property market experiencing a significant upturn in the latter half of 2023, establishing itself firmly as one of Australia’s most robust markets, this investment property stands as a logical choice for the discerning buyer.
• The inclusion of Melton in the city’s borders has not only made Melbourne Australia’s largest city but also contributed to its population growth. This, coupled with a resilient performance in dwelling values during challenging times, signals a market with strong recovery and growth potential.
• The noteworthy 6% long-term growth in prestigious South Yarra adds to the appeal of the investment. Strategic infrastructure projects worth billions, such as the Suburban Rail Loop and the North East Link, further enhance the allure, promising substantial economic benefits and job creation. The shift towards high-density living, with 86% of homes in Melbourne being units and townhouses, meets the modern demands for affordability and lifestyle, making this property an investment that is both prudent and promising in a city that is a leading growth market.

Rental Returns and Vacancy Rates

• In the heart of Melbourne’s thriving metropolis lies a golden opportunity for the astute investor. Recent data underscores a compelling narrative: the City of Melbourne is experiencing a robust growth in rental demand, evidenced by a staggering 19% increase in house rents and a 12% uptick for units in just the past year.
• Vacancy rates, once bloated to 11% during the height of the pandemic, have now contracted to a snug range between 1% and 3%, signaling a market ripe with potential for high occupancy. The most lucrative yields are found in the unit market, with Carlton and Melbourne CBD delivering an impressive 7.3% and 7.2% respectively, dwarfing the highest house market yield of 3.1% in Kensington.
• This property is not merely a residence; it’s a strategic investment in one of the few locales where buying trumps renting, promising both immediate yield returns and long-term capital growth. Seize the moment to secure a piece of Melbourne’s coveted real estate landscape.

Suburb Profile

• In the heart of one of Australia’s most vibrant cities, the City of Melbourne stands as a beacon of growth and opportunity. With a population set to double by 2041 and a demographic that’s young, affluent, and highly educated, this is an investment you cannot overlook.
• Boasting a resilient economy bouncing back to a forecasted $74 billion in 2024, the area is a hotbed for professionals earning above-average incomes. The focus on high-density living, with units and townhouses becoming the preferred choice, aligns with modern lifestyle demands and paves the way for savvy investment.
• Infrastructure projects worth billions promise a surge in job opportunities and further economic uplift. The property market is ripe for growth, with Melbourne units experiencing a 2.9% increase in value over the past year, and suburbs such as Carlton, Melbourne CBD, and South Yarra primed for future price growth. This is your chance to secure a stake in a world-class city that is not just a place to live but a place to thrive

Council Highlights

Population
Growth

High Rental
Yields

Robust
Infrastructure

$35 billion
Rail Loop

$16 billion
North East Link

$14 billion
Biomedical Precinct

Major Job
Node

86% High-density
Dwellings

• In the heart of one of Australia’s most vibrant cities, the City of Melbourne stands as a beacon of growth and opportunity. With a population set to double by 2041 and a demographic that’s young, affluent, and highly educated, this is an investment you cannot overlook.
• With the City serving as a hub for prestigious universities, hospitals, and major business ventures, the area is witnessing an impressive suite of infrastructure projects amounting to billions, including the monumental $1.7 billion Melbourne Arts Precinct Transformation.
• This property benefits from robust population growth and attractive rental yields, positioning it as a logical choice for those seeking to capitalise on Melbourne’s dynamic growth and the burgeoning demand for connected urban living. With a majority of apartments already snapped up off-the-plan in nearby developments and the return of international students fuelling the local economy, the time to invest in Melbourne’s future is now.

Council insights

• In an investment landscape where discerning buyers seek growth, stability, and value, the City of Melbourne stands out as a beacon of opportunity. With its resilient economy and a shift towards high-density living, where 86% of homes are units or townhouses, this investment property in Melbourne’s heart is positioned for success.
• The area’s strong population growth, bolstered by substantial infrastructure investments totalling billions, including the $35 billion Suburban Rail Loop and the $14 billion Biomedical Precinct, underpins a robust rental market and promising capital growth prospects.
• With rising buyer demand for inner-city apartments and a remarkable recovery post-pandemic, underscored by a 2.9% increase in unit values over the past year, this property not only offers affordability but also stands as a smart choice for those looking to capitalise on Melbourne’s dynamic urban renaissance. Whether for the astute investor or the forward-thinking homeowner, this property signifies a shrewd acquisition in a city that’s not just thriving but truly transforming.

Major Projects Impacting the Region

• With Melbourne’s property market continually evolving, Unit 2901 at 35 Spring Street stands at the heart of a thriving and expanding urban landscape. Significant projects in the vicinity are set to enhance the desirability and potential of this property, making it a logical choice for those looking to invest in a growth-oriented future.
• The nearby $1 billion redevelopment of The Melbourne Convention & Exhibition Centre is slated for completion in 2025, promising to introduce 45,000sqm of commercial space and 470 build-to-rent units, while the $500 million Greystar project in South Yarra will deliver 625 build-to-rent units by the same year, generating 1,000 construction jobs.
• Additionally, the $14 billion Biomedical Precinct in Parkville will create 10,000 job opportunities upon completion in 2032, alongside the $6.7 billion Victoria Harbour project in Docklands, concluding in 2030 with luxurious high-rise waterfront apartments. These projects not only signify substantial job creation but also indicate a robust influx of amenities and infrastructural enhancements that invariably bolster property values. Investing in Unit 2901 is not just a purchase; it’s a strategic decision to be part of Melbourne’s dynamic future.