By Rich Harvey, CEO & Founder, propertybuyer.com.au
Melbourne is a capital city renowned for its secrets. Laneway bars hidden behind nondescript doors. Hush-hush suburban restaurants delivering the finest cuisine from the most understated of premises.
And then there’s the insider network of knowledge that can help build fortunes or establish careers.
And so, it is with our property markets.
While there are plenty of well-known addresses throughout greater Melbourne that garner much of attention, there’s also a raft of locations with excellent investment possibilities that fly well below the radar.
Well, I’m about to let you in on those clandestine addresses.
Here are five areas that don’t gather as many accolades as their more popular neighbours, but which are delivering exceptional potential for those in the know.
Collingwood
Not simply a footy team, Collingwood has all the makings of an outstanding property investment option.
Positioned just three kilometres from the CBD, Collingwood has well and truly grown beyond its historic blue-collar reputation. Residents can take advantage of the suburb’s burgeoning lifestyle options, and the buzzing nightlife in adjacent Fitzroy.
Collingwood plays host to comprehensive retail – particularly along Smith Street. There are a range of educational options for families as well, and all necessary services and facilities are readily available.
The suburb is full of history with Victorian architecture dominating. Historic terraces, warehouse conversions and modern structures also call Collingwood home. Its housing will cater to range of budgets and styles.
The median house price in Collingwood is $1,177,5000 and median rent is $643 per week. That’s a 2.8 per cent gross yield which is not too bad given its prime inner–city location.
For those on a budget, the median unit price is $643,000 and rent is $440 per week, reflecting a decent 3.6 per cent gross yield.
Kensington
Kensington is the very picture of gentrification in Melbourne, which is always a marker for future property price rises.
Located just four kilometres from the city centre, there is raft of excellent services and amenities on offer.
The very village atmosphere of Kensington is charming. Throw in top-notch cafes and retail, and you’re on a winner.
There’s a great diversity of housing from historic terraces through to warehouse conversions and apartments. Again, all budgets are well catered for.
Kensington’s median house price and rent sit respectively at $1,107,500 and $580 per week, reflecting a 2.7 per cent yield.
For affordability driven investors, units offer a more accessible option. The median price of $540,000 and median weekly rent of $400 per week reflect a yield of 3.9 per cent which is a handy return in today’s low-interest rate environment.
Mornington Peninsula
I‘ve discussed the attraction of the Mornington Peninsula in previous blogs, but it remains a ‘must see’ region for anyone interested in under-the-radar opportunities in Greater Melbourne.
The Peninsula’s recent popularity is driven by those looking to move south of the big smoke and enjoy a more relaxed lifestyle at a lower buy-in price. The areas picturesque outlooks and affordable housing have seen plenty of locals make the move from locations like Brighton, for example.
Suburbs such as Sorrento and Portsea are reasonably well known, but there are other locations worth investigating. For example, Rye and Tootgarook, which has a house price median of $780,488, deliver a village feel with northerly water aspect. St Andrews Beach has a southerly view into the strait, while Red Hills’s low density inland lifestyle will appeal to many.
Expect the Morning Peninsula to continue gaining in popularity well into next year, with many of these under-the-radar suburbs set to benefit.
South Kingsville
South Kingsville is a blink-and-you’ll-miss-it location positioned eight kilometres from the Melbourne CBD.
A quick drive down the West Gate Freeway takes South Kingsville residents to the heart of town.
South Kensington lives in the shadow of its higher profile neighbours of Newport, Yarraville and Spotswood and is conspicuous by its shape – a near perfect right-angle triangle makes up the borders of this 6000 square metre suburb.
Although bounded by a train line, the nearest station is in Spotswood, so busses are the primary mode of public transport.
South Kingsville has excellent access to services and facilities in neighbouring suburbs – a true ‘bridesmaid’ location. Public areas and parklands, both along the Yarra River and the Newport Lakes Reserve, all add to the suburb’s appeal.
South Kingsville has a median house price of $1.06 million, and a median unit price of $525,000. In comparison, neighbouring Yarraville has a median house price of $1.13 million, and unit price of $725,000, so there’s an affordability motivator here which means plenty of upside for price accessible housing.
Parkville
The name might suggest this inner-city suburb would be dominated by parkland… and that’d be correct.
Parkville sits just 3.7 kilometres north of the CBD, and Royal Park makes up the vast majority of the suburb’s four-square kilometre area. A small residential section in the northern portion of Parkville offers Victorian style cottage, terrace houses and even some contemporary attached housing.
Parkville has ready access to town as well as the raft of lifestyle and entertainment offerings in the adjacent, higher-profile suburbs of Carlton, North Melbourne and Brunswick.
While housing is relatively pricey, with a suburb median of $1,625,500, Parkville still flies under the radar of most buyers given its relatively small residential component. That said, this is solid inner-city real estate and homes have all the right fundamental for sustained future price growth.
Despite its lockdown woes, Melbourne remains a cultural heart that will beat much stronger as it comes out of this COVID hibernation. Purchasers who choose wisely and use a skilled buyers’ agent to help them secure the right asset, seem certain to profit from these under-the-radar suburbs.
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