1706/89 Gladstone Street, South Melbourne VIC 3205

Key risks: negative growth history | flood overlay exposure | oversupply of similar units | short-hold owner pattern The property carries a measurable capital risk. Comparable sales in the Gravity Tower show consistent annual depreciation of 1.5 to 3.2 percent over the last decade, which means a buyer could lose roughly $8,000 to $18,000 per year in real terms relative to inflation, assuming the same trajectory continues. The flood overlay adds an insurance cost premium and may affect resale appeal during wet seasons. That said the rental yield at 7 to 8.5 percent is genuinely strong, which shifts the logic toward income rather than growth. This is a hold-for-cashflow unit, not a short-term flip. What makes this property competitively useful is the northern exposure and the city views from the 17th floor, which are rare in a tower with so many similar floor plans. The double glazing, stone kitchen, and European oak flooring are above the standard for this price band, which means less immediate outlay on upgrades. This unit suits an investor seeking steady rental returns in a connected location near South Melbourne Market and light rail, or a first-home buyer who intends to live there for five-plus years and treat it as a lifestyle starting point with a decent yield if they later rent it out. The prior sales data shows value has not grown here, so the urgency to buy is low; you have time to negotiate from a position of evidence.