Carlton student accommodation sells for $160,000, reflects 10.76% yield

A one-bedroom apartment in a student accommodation building in Carlton was the weekend’s most affordable auction sale in Melbourne, according to Australian Property Monitors.

Located at 449/800 Swanston Street, the apartment sold for $160,000 through Barry Plant Brunswick.

Prior to this sale, it last sold for $237,000 in 2005, according to RP Data records.

Listing agent Troy Constantine told Property Observer that there were two people present at the auction, and the successful bidder was an investor.

He revealed that the reserve price was $160,000.

He added that student accommodation properties were in demand at the moment.

“I generally sell student accommodation and properties similar to that, and my average days on market is around 25 days,” he said.

Constantine noted that the property market in Carlton has “pulled back a little bit” in the last fortnight.

“I think that’s because of supply and demand – more supply than demand, and more choices for buyers to make,” he said.

According to RP Data records, the unit was listed for sale from Dec 2011 to January this year, at an asking price of $199,000.

Constantine added that the $160,000 price is “consistent with what’s being sold at the moment”, and that the vendor “needed to sell quickly, that’s why the reserve was set at that range”.

According to its estimated asking rent of $331 per week, the price reflects a 10.76% rental yield.

According to the latest RP Data report, the median unit price in Carlton is $270,000, down 6% on last year. The average discount required to sell a unit is 7.1%, while private treaty sales average 86 days on market. 

The median asking rent for units in Carlton is $370 per week, while gross rental yield currently stands at 7.1%.

dleow@propertyobserver.com.au

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.

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