FairSquare/Victoria/South Melbourne
Suburb Dossier · VIC · 3205

South Melbourne

FairSquare analyses every Australian suburb for property investors — score, yield, risk and a full investment verdict.

FairSquare's model rates South Melbourne, Victoria 6.5 out of 10 (Workhorse Investment) as of May 2026.

South Melbourne offers a prime inner-city investment, leveraging its 2km proximity to the CBD to attract high-value tenants and drive consistent capital appreciation. A critically low 1.2% vacancy rate underscores robust tenant demand, solidifying its position as a reliable workhorse asset for long-term investors.

Model Verdict
Workhorse Investment
6.5OUT OF 10
Median
$2.07M
house
Gross Yield
2.6%
derived
Weekly Rent
$1050
3-bed median
12m Growth
+6.5%
trailing
Secret Sauce · Derivation

How the model valued South Melbourne

The median price is derived, not estimated. Every number on this page traces back to the model's proprietary yield surface — calibrated for each part of the country and resolved against distance from CBD. The price falls out of the formula.

Confidencehigh

Inputs for this suburb sit at the top of our calibration tier. The model is not guessing.

Distance
to CBD
2km
Yield
derived from model
2.6%
Median Rent
weekly, 3-bed
$1050
Median Price
(rent × 52) ÷ yield
$2.07M
Fit · Who It Suits
Investor Profiles
Defensive Hold
Model Tags
Balanced Market
Signals · Partial View
Market Temp
Warming
Supply Pressure
Normal
Rent Trajectory
In line
Cycle Position
Hot ·
Days On Market
Cool
Clearance Rate
Active ·
Buyer Demand
Hot
Vacancy Rate
Cool ·
Rent Growth 12m
Active
Price Volatility
Hot ·
5-Year Forecast
Cool
Risk Flags
Active ·

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What's inside
01Cover page with verdict & score
02In-30-seconds snapshot
03Score breakdown across 5 dimensions
04Big picture & liveability analysis
05Market cycle + 10-year forecast
06Rental story + yield scenarios
07Supply & demand pressure gauge
08Opportunity & risk register
093-play investor playbook
1012-24mo + 3-5yr outlook
112026 Budget impact analysis
Nearby · VIC
1.1km away
Albert Park
Steady Buy
$2.76M2.4%+10.2%
1.9km away
Middle Park
Steady Buy
$3.01M1.9%+9.5%
2.5km away
Port Melbourne
Workhorse Investment
$1.44M3.2%+9.5%
2.9km away
St Kilda West
Workhorse Investment
$2.61M2.4%+7.5%
FAQ
01

Is South Melbourne a good investment in 2026?

FairSquare's model rates South Melbourne, Victoria 6.5 out of 10 (Workhorse Investment) as of May 2026. South Melbourne offers a prime inner-city investment, leveraging its 2km proximity to the CBD to attract high-value tenants and drive consistent capital appreciation. A critically low 1.2% vacancy rate underscores robust tenant demand, solidifying its position as a reliable workhorse asset for long-term investors.

02

What is the median house price in South Melbourne?

The median house price in South Melbourne, VIC is $2.07M. Weekly rent of $1050 against a 2.6% gross yield underpins this figure.

03

What is the rental yield in South Melbourne?

South Melbourne has a gross rental yield of 2.6%, with a median weekly rent of $1050. 12-month price growth is tracking at +6.5%.

04

Which investor profiles does South Melbourne suit?

Based on its market signals, South Melbourne aligns with: Defensive Hold.

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