3/81 Alexandra Avenue, South Yarra VIC 3141

Tiny 33m² unit | No parking | Heritage overlay | High rental yield | Prime South Yarra location This unit presents a compelling, high-yield entry into a premier suburb, with its estimated 5.8% gross rental yield significantly outperforming broader market averages for such a location. The property’s extreme compactness and lack of parking are decisively offset by its position, which guarantees strong rental demand from singles or couples prioritising amenity over space. It serves specifically as a high-cash-flow investment vehicle, not a owner-occupier home, best suited for a capital-light investor seeking exposure to a resilient rental precinct with excellent connectivity and school catchments. The heritage overlay provides built-form protection, stabilising the streetscape and limiting densification that could devalue the property’s character. The primary risk is illiquidity upon resale, as the sub-40m² floor area and absent parking narrow the buyer pool to investors only, potentially capping capital growth as evidenced by the building’s mixed sales history. The commercial logic is clear: secure a high-yielding, low-maintenance holding in a tightly held building where 71% of owners have held for over a decade, indicating satisfaction. Proceed strictly as a long-term rental investment; the numbers justify acquisition at or below the lower end of the advertised price guide, using the building’s own sales as a benchmark for value. Recent sales within the same building provide a direct value anchor: – Unit 8 sold for $483,000, demonstrating a 0.67% annual growth rate over a ten-year hold. – Unit 11 sold for $487,500, showing a stronger 3.28% annual growth over fifteen years and currently achieving a 5.33% yield. This comparables data suggests the subject property’s estimated value is credible, but its smaller size and lack of parking command a price towards the lower end of this established range.