Port Melbourne rental market gets Residex recommendation
Investors are encouraged to keep a close eye on Port Melbourne after a recent report by property data business Residex, which suggested the suburb was performing strongly in the rental market.
The March 2013 Residex best rent report listed Port Melbourne units as among the top investment opportunities in Australia.
The median rental yield has increased to 5.41%, up from 4.5% last December. The area was doing significantly better than the average Melbourne rental yield of 4.4% for March this year, according to the report.
An RP Data report has shown the median asking rent has increased since 2008 and now standis at $655 per week, an increase of $110 from last December.
Formerly an industrial area, Port Melbourne has since experienced an urban makeover providing parklands, bay side beaches, upmarket apartments, restaurants and cafes with 49% of dwellings within the area currently being rented.
The estimated growth for the area is expected to be about 6% over the next 5 years.
However, several apartments currently available on the rental market don't reflect any recent rental price growth.
A two-bedroom, two-bathroom property at Esplanade East (pictured below) listed for $690 per week with the rent history showing a $10 reduction since initially listed last month. In November last year it was listed at $720 per week.
A three-bedroom, one-bathroom Pickles Street property (pictured below) has been listed for $650 per week. Its rental asking price has been reduced from $680 last March.
A two-bedroom, two-bathroom Rouse Street apartment (pictured below) is available for $700 per week. In March it was listed at $750 per week.
