Springvale unit sells for $160,000, reflects 5.85% gross yield

A one-bedroom unit in Springvale was Melbourne’s most affordable auction sale last weekend, according to Australian Property Monitors.

Located at 4/49 Heather Grove, the unit sold for $160,000 through Barry Plant Noble Park.

Prior to this sale, the unit last sold in 2007 for $120,000. It also sold in 1991 for $47,000, in 1988 for $43,000, and in 1986 for $34,000, according to RP Data records.

It was listed for sale on 28 November this year with a price guide of “$130,000+”, according to RP Data records.

Listing agent Nalaka Weerakoon told Property Observer the auction saw four bidders, and it was a bank mortgagee sale.

The reserve was set at $165,000, but was adjusted to $160,000 on the day.

He revealed that the current tenants had been evicted as it was a mortgagee sale, and the successful bidder was an investor.

Weerakoon also said that the property market in Springvale is doing very well at the moment.

“It’s a really good market. Compared with the last six months, I think it’s gone up by about five to ten per cent. For next year, I think it has to continually go up. The way it’s gone up now, I don’t think it’s going to stop immediately. This growth will continue,” he said. 

According to Barry Plant Noble Park’s estimated asking rent of $180 per week, the price reflects a 5.85% gross yield.

According to the latest RP Data report, the median sale price for units is $339,000, down 5.2% on last year. The average discount required to sell a unit is 4.7%, while private treaty sales average 79 days on market.

The median asking rent for a unit in Springvale is $298 per week, while gross rental yield currently stands at 4.6%.

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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