Melbourne cheapie sells for $210,000, reflects 7.18% yield

A one-bedroom apartment in the Melbourne CBD was the most affordable auction sale in Melbourne last weekend.

Located at 404/408 Lonsdale Street, the unit sold for $210,000 through Biggin & Scott Richmond.

Prior to this sale, it last sold in 2007 for $170,000, and in 1998 for $118,857, according to RP Data records.

Listing agent Claire Parkes told Property Observer the auction went “well”, with two bidders. The sale price was a pretty good result.

“It’s the highest price for a studio in that building in the last few years,” she said.

The successful bidder was an investor.

She notes that the property market in Melbourne is “bubbling along nicely” as the moment, with investors coming back on the market.

“One-bedroom apartments aren’t moving as well as larger apartments and houses. However, it seems like they are on the move. Older-style units and houses seems to be preferred over the newer styles that available, probably due to affordability and positioning,” she said. 

According to Biggin & Scott’s estimated asking rent of $290 a week, the price reflects a 7.18% rental yield.

According to the latest RP Data report, the median sale price for units in Melbourne is $400,500, up by 4% on last year. The average discount required to sell a unit is 6.1%, while private treaty sales average 86 days on market.

The median asking rent for a unit is $450 per week, while gross rental yield currently stands at 5.8%.

Other one-bedroom units listed for sale in Melbourne include: 1002/243 Franklin Street (pictured below).

{yoogallery src=[images/stories/2013/11/19/mel2]}

Diane Leow

Diane Leow

Diane has spent her entire career in the world of digital. She is passionate about delivering the best content to a world that is becoming increasingly jaded by the news. She also believes in the importance of great journalism and how it can change the world. Oh, she also drinks a lot of coffee.

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?