Substantial Apartment Complex With Income And Potential In Inner-North Lifestyle Hotspot

Posted on 05th June 2023

A large 1,170sqm landholding and with a 20-unit apartment complex in the inner-north lifestyle hotspot of Thornbury has come to the market for the first time in 60 years.

Fitzroys’ Mark Talbot and Ervin Niyaz are marketing 12 Dundas Street, Thornbury, which is going to auction on Tuesday, 20 June at 1pm on-site.

Expectations are of $2.9 million-plus.

The vendor’s family originally built the property.

“It’s an opportune time to sell,” Talbot said,

“We’re expecting interest from investors willing to renovate the apartments and increase the rental. Rents are on the way up and will continue to be while Melbourne is experiencing historically low vacancy rates amid a housing shortage - with the inner-north market particularly tight -and the city’s population growth makes it the largest in Australia.”

“Australia is forecast to receive a record intake of migrants with 400,000 expected this financial year and 315,000 in the following year, and many will come to Melbourne and initially be looking to rent.

“The shortage of housing and record migrant intake will put further upwards pressure on demand for new dwellings.”

REA Group reports the median rental price for one-bedroom apartments in Thornbury have risen by 6.9% in the last 12 months to $310 per week.

“Alternatively, an investor could subdivide and sell down the apartments,” Talbot said.

He said many people are looking to live in well-connected inner suburbs close to hospitality and lifestyle amenity, particularly at a time of flexible working arrangements.

The site is immediately opposite Woolworths and Aldi supermarkets and is a short walk to hugely popular High Street, and notable traders including Little Henri, Umberto Espresso Bar, Barton Fink, Cedar Bakery, Thornbury Theatre, Short Round, and a plethora of local and established businesses.

According Fitzroys’ most recent Walk the Strip report, vacancies along High Street, Northcote came down from 9.3% to 5.0%, making it one of the best-performers in recent times among Melbourne’s famous shopping strips.

The property is also surrounded by a number of completed and pipeline developments that are bringing greater vibrancy and foot traffic to the area, and is in close proximity to Thornbury train station plus excellent tram and bus transport options.