1106/9 Power Street, Southbank VIC 3006

Level 11 apartment | 2 beds, 1 bath, 1 car | Flood overlay present | Strong rental yield estimate | Near arts precinct revamp This unit presents a compelling proposition for an investor seeking high yield in a dense, amenity-rich location, with its estimated rental return standing out against its price guide. The configuration of two bedrooms with a single bathroom is common for Southbank, but the property’s position on the 11th floor and its inclusion of a car space add practical value in a suburb where parking is a premium. Its immediate proximity to the $1.7 billion arts precinct redevelopment anchors its long-term desirability, ensuring sustained demand from tenants drawn to culture, employment, and transport nodes. This property best serves a capital-light investor prioritizing immediate cash flow over luxury finishes or family-sized accommodation, given the strong yield signals and its prior history as a rental. The primary decision mechanism is the flood overlay, which imposes insurance costs and potential future resale friction on a buyer, directly eroding investment returns. The absence of detailed recent comparable sales for the specific building necessitates a conservative valuation approach, leaning toward the lower estimated range. However, the commercial logic is clear: secure a position in a transforming precinct at a yield that compensates for the overlay risk, with the option to benefit from infrastructure-led capital growth. Acquire this unit for its income, hold through the precinct’s completion, and accept the structural risk as the cost of entry into a tightly held location.