St Kilda cheapies sells for $254,000 as investors compete with helpful parents

A one-bedroom apartment in St Kilda was the cheapest auction sale in Victoria on a recent Saturday, according to Australian Property Monitors.

The unit at 5/50 Carlisle Street sold for $254,000 through Greg Hocking St Kilda.

The unit was listed with a price guide of “$235,000 to $260,000”.

It had been listed for rent in 2007 at an asking price of $215 per week, in 2012 at an asking price of $260 per week, and in June this year at an asking price of $250 per week, according to RP Data records.

Listing agent Rowan Bustin told Property Observer that the unit was currently rented out at $250 per week, the price reflecting a 5.12% rental yield.

Bustin also told Property Observer the auction was “very vibrant”, after the starting bid at $240,000. 

Bustin said the successful bidder was an investor.

“It is a very good investment with an over 5% return,” he said.

The block of units at 50 Carlisle Street has traditionally been priced quite cheaply in comparison to other units in the area. Recorded sales include unit 10, which sold in 2008 for $210,000, and unit 14 which sold last year for $290,000.

“The block is a great spot. Obviously there's some concern about the space it is situated in, it is two minutes from the red light district. But it is a well-policed area,” Bustin said.

He noted that St Kilda has been a popular suburb for investors as units for lease are snapped up very quickly and are rented at “realistic value”.

“With the cash rate, it is a stimulant for market activity and people buying in the area,” Bustin said. 

He added that most investors are couples who are looking to buy into the area.

Conversely, Bustin also noted that young females are dominating the St Kilda market.

“The buyers we've seen recently are young female, not the male purchaser anymore,” he said. 

But he cited a one-bedroom unit at 2/84 Blessington Street, which was listed for sale with a price guide of “$260,000 to $280,000” and sold at auction for $325,000 when purchased by parents for their son.

According to the latest RP Data report, the median sale price for units in St Kilda is $450,000, down 4.3% on last year. The average discount required to sell a unit is 6.9%, while private treaty sales average 91 days on market.

The median asking rent for units is $380, while gross rental yield currently stands at 4.4%.