3816/70 Southbank Boulevard, Southbank VIC 3006

High-floor city view | Two-bedroom scarcity in tower | Flood overlay risk | Strong rental yield potential This unit presents a compelling proposition for an investor seeking high-yield exposure to Melbourne’s inner-city rental market, with its two-bedroom configuration commanding a scarcity premium in a building dominated by one-bedroom layouts. The level 38 position guarantees exceptional views and light, translating to sustained tenant appeal and rental resilience. The property is best suited for a capital-light investor prioritising immediate cash flow over short-term capital growth, as the established high rental demand and fibre internet support a low-vacancy, premium tenancy. Decision hinges on accepting the building’s volatile value history and specific encumbrances. The flood overlay imposes a known insurance cost and potential resale friction, while the high turnover and negative growth trends in comparable sales signal a market segment sensitive to economic downturns. The commercial logic is clear: acquire below the estimated market value, lock in a yield above 5.5%, and hold for the income stream, not speculation. Treat this as a bond-like holding; its value is in the reliable yield, not as a growth vehicle. Recent sales within 70 Southbank Boulevard demonstrate significant price variance and a general trend of negative annual growth over longer holds: – Unit 8607 (3 bed, 2 bath, 2 car) sold for $1,550,000, showing modest 1.75% annual growth over 5 years. – Unit 3304 (2 bed, 2 bath) sold for $530,000, with -1.90% annual growth over 11 years. – Units 2308 and 5010 (both 1 bed, 1 bath) sold for $390,000 and $502,000 respectively, each showing negative annual growth over a decade. This data confirms that one-bedroom units in this building have struggled for capital appreciation, making this two-bedroom unit’s sub-market asking price a relative value play within the tower, though still within a challenging overall growth environment.