Thinking about buying an off the plan property in South Melbourne, VIC? You'll want to discover the Location Demographics, Travel & Infrastructure and Investor Insights.
Lauren is a first time investor who just bought an off the plan apartment in South Melbourne.
Last year, I decided to expand my property portfolio. I was already living in the apartment that I had bought, but wanted to purchase a property for investment purposes. After months of research and looking for an area that ticks all my needs, I finally settled on an off-the-plan apartment in South Melbourne. It has been the best property decision I’ve ever made and here’s why:
The vibrant area of South Melbourne is located just 3 km south of Melbourne’s Central Business District. Surrounding it are the suburbs are Port Melbourne, Albert Park, Southbank and South Yarra, which are popular for their inner-city lifestyle.
On Coventry Street, the iconic South Melbourne Market has stalls of meat, seafood and fresh produce. I especially love going to the Simply Spanish Restaurant for their tasty paellas and tapas, and Bambu Restaurant which serves delicious dumplings and rice dishes. For a nice night out, the Albion Rooftop is good for their live music while the O'Connells Hotel has a cosy fireplace and courtyard. If I want an upbeat venue, dinner and drinks at the Clarendon Restaurant & Skybar is a great way to end the long work week. I also like to unwind at the spacious Eastern Reserve Park and at other local parks with beautiful streetscapes.
As an engaging area with lots to do and see, South Melbourne attracts young professionals, students and families. According to the Australian Bureau of Statistics, the entire population is over 11,500 people and the median age is 39 years old. Most of the residents belong to the 30 to 34-year-old age group and there are close to 3,000 families calling South Melbourne home. Private dwellings also continue to grow rapidly with 7,300 properties already built.
Looking for a great option for families and young adults? Check out these listings.
South Melbourne is well connected by trams with a handful of stops on Park Street and Clarendon Street. There are also a few bus stops along Cecil Street and Montague Street. If you need to hop on a train, Southern Cross Railway Station is just 2 km away, with its 16 platforms and connection to V Line trains to go on regional trips.
You’ll also have direct access to the Princess Highway and the West Gate Freeway. That being said, given its proximity to the Melbourne CBD, it is so easy to commute around without a car. There are also plenty of options for outdoor activities like walking or bike riding along the Yarra River.
Looking for a property near public transport? Check out these listings.
Boasting a range of cultural attractions, there are also loads of development projects to look forward to. The Port Phillip Bay City Council is taking on the South Melbourne Town Hall Restoration project which focuses on repairing and renewing the building to make it safe, welcoming and environmentally sustainable. The redevelopment also aims to make the space more adaptable, boost visitation and strengthen its history. Works are anticipated to be completed during 2023.
In South Melbourne, houses have a gross rental yield of 2% with median rent sitting at $650 per week. Apartments offer a much higher rental yield at 3.5% with median rent of $425 per week. Keep in mind these are median rental yields, and with the demand for rentals and super low vacancy rates, those letting properties now will be achieving better than 5% yields in most cases.
In the last 10 years, South Melbourne has experienced capital growth of 27%, with median property prices sitting at $515k in 2012, and $655k in 2022.
If South Melbourne sounds like your cup of tea, why not look into buying an off the plan property there? You can start your search here or book an appointment to speak with our team of property experts to see if this is the right area for your property needs.
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