Elsternwick cheapie sells for $267,000 reflecting 5.93% yield
A one-bedroom unit in Elsternwick was Victoria’s most affordable auction sale over the past weekend, according to Australian Property Monitors.
Located at 3/245 Hotham Street, the unit sold for $267,500 through Hodges Real Estate Caulfield.
Listing agent Alex Flamm told Property Observer the auction was “a bit slow... because it wasn't the right property at the time that people were interested in the marketplace”.
He added that while the property would see a good rental return, it wouldn’t provide a strong capital growth return, deterring some bidders.
There were about 17 people present at the auction, with two bidders.
The successful bidder was an investor.
When asked about the reserve price, Flamm revealed that the property was sold under “unfortunate circumstances.”
“It had to be sold irrespective of what the reserve was,” he said.
The property also sits in a unique location. While the listing notes that it is located in Elsternwick, RP Data states that it is part of Ripponlea. Flamm said that Ripponlea is a “tiny small pocket” of Elsternwick, and added that Hodges manages a few properties along the same road and lists them as located in Elsternwick.
Flamm also said that the property market in the area is “brilliant” at the moment.
“It is close to the Elwood precinct, close to the beach, basically close to a lifestyle. It also has strong period-style properties. It’s very centralised, there are train stations and trams going east and west – it’s got a lot of ingredients for someone to be able to live in, and is close to the CBD,” he said.
According to Hodges’ estimated asking rent of $305 per week, the price reflected a 5.93% yield.
According to the latest RP Data report, the median unit price in Ripponlea is $423,000, up 5.8% on last year. The median asking rent is $350 per week, while gross rental yield currently stands at 4.3%.
According to the latest RP Data report, the median unit price in Elsternwick is $468,000, down 6.8% on last year. The average discount required to sell a unit is 5.1%, while private treaty sales average 82 days on market.
The median asking rent is $375 per week, while gross rental yield currently stands at 4.2%.