Elwood, Australia's No.1 Investor Spot

22 April 2014

Christina Zhou - Domain.com.au, 17 April 2014

Editorial Note: This article is of particular interest to the investors in CVC Venture Managers project Barkly Apartments. The investment property on Barkly Street in Elwood was purchased in June 2012.

Three of Melbourne’s suburbs have made an appearance in the list of the country’s top 10 investment hot spots for units. 

New research released this week by property data firm Residex has tipped strong capital growth over the next five years for Elwood, St Kilda and Richmond in the city’s south and south east. 

Residex data suggested that Elwood is the nation's top suburb to buy a unit in, with expected annual growth of more than 8 per cent until 2019. St Kilda and Richmond follow closely behind with a projected 7 per cent annual growth. 

Malvern is the second best place to buy a house in Australia after Bellevue Hill in Sydney. 

After a strong performance last year with house values up 7.68 per cent, the suburb is predicted to surge more than 10 per cent per annum for the next five years. 

The founder of Residex and consultant for Onthehouse John Edwards said while he expects growth to stabilise this year, there were opportunities for investors in some inner-ring areas. 


He said investors were attracted to St Kilda’s affordable older-style apartments.  “The investors are now recognising more than they did before that there are premiums attached to brand new units, and the new units are more being bought by international buyers,” he said. 

“And savvy investors are looking at the older style because of what they can do to improve the value.” 

Dannie Corr, director of Professionals Whiting & Co, said there was also a strong rental demand in both Elwood and St Kilda where the agency is based, and that a significant proportion of the units were tenanted. 

“It’s fairly typical in many of the buildings – they can be very good buildings – that there is at least 50 per cent [tenanted]," he said. 

“In many cases, sometimes more than 50 per cent of them are actually leased out and are owned as investment units.” 

Mr Corr said Elwood was going through a popularity phase at the moment, particularly with buyers from 25 to 35 years old. 

Marshall White director John Bongiorno said Malvern was highly sought after due to prestigious schools in the area, easy access to shops and transport as well as period homes throughout the suburb. 

 “It’s one of the few suburbs in Melbourne that still has a very family feel to it,” he said.

 “You don’t have any high-rises, you don’t have any medium-rises – the density of dwellings is still family friendly.” 

 Andrew Crotty, director of Biggin & Scott Richmond, attributes the popularity of the area to lifestyle and convenience to the city combined with the additional heritage rules placed on many homes in the suburb. “The heritage overlays that the council has put in are a good thing because they protect the suburb and it would indicate that there is going to be good capital growth certainly in the next few years,” he said.


© Copyright 2019 CVC Venture Managers