Walking through the streets of Collingwood it’s hard to imagine this suburb was once considered less than desirable. Today it is somewhat of a mecca for top restaurants, bars and culture with owner-occupiers, investors and renters chomping at the bit to get into the property market.
Not too long ago, Collingwood was perceived as a less than desirable suburb north of Melbourne’s CBD. Rough around the edges Collingwood has long been an industrial hub of Melbourne, not to mention the old stomping ground of notorious Mark “Chopper” Read. Today this reputation could not be further from reality. Collingwood is quickly becoming one of Melbourne’s most sought after suburbs for owner occupiers, investors and renters.
Walking distance from the city, loads of transport and schools at your front door, the appeal of Collingwood is skyrocketing. The median house price in the suburb is $900k yielding a weekly rent of $600, with units sitting at $543k achieving a median weekly rent of $480 per week.
To put the popularity of this city fringe suburb into perspective, the average visits to a property listing on realeastate.com.au in Melbourne is 647, the interest in properties in Collingwood vastly exceeds this averaging 759 visits per property listing. This is nothing compared to the record breaking open inspection a new building experienced in the suburb two weeks ago. The building had 26 apartments on offer and experienced over 300 prospective tenants lining up 100 meters down the street to jump at the opportunity to live in this diverse and lively suburb. Many applicants offering more than the listed rent to increase their chances at securing a property.
Whilst this is a spotlight on the suburb of Collingwood, the sentiment reigns true for all up and coming suburbs within the ‘donut’. The interest and demand is at an all time high for suburbs rich in culture, transport and amenity where people can have a great work life balance. Investing in a diverse and high demand suburb is the way to ensure that you will tenants who want to stay in your property long term and those who are willing to pay a little extra to live in a suburb full of infrastructure. Developer Tim Gurner told Domain “A lot of the young couples have just decided they’re priced out of the market, so they’re not worrying about trying to buy and purchase anymore… I think they’re just willing to spend that extra $100 to $200 a week to make sure they get one they absolutely love and they can make it their own home.”
For more information on investing in up and coming suburbs, contact Solid Investment Property on (03)9690 2666
Image By Mat Connolley (Matnkat) (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html), CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/) or CC BY 2.5 (http://creativecommons.org/licenses/by/2.5)], via Wikimedia Commons