404/1-5 Queens Avenue, Hawthorn VIC 3122

Mid-floor unit in established strata | High-turnover investor building | Exceptional rental yields over 16% | Common 1-bed, 1-bath configuration. This unit presents a compelling proposition for yield-focused investors, not owner-occupiers. Its primary strength is the demonstrably high rental demand within this specific complex, with recent comparable leases achieving gross yields above 16%, a standout figure for inner-suburban Hawthorn. The configuration is standard for the area, but the property’s value is anchored by its position within a building that exhibits strong, consistent cash flow. The data indicates a market segmented between short-term holders capitalising on rental returns and a core of longer-term holders, suggesting the building operates as a reliable income-producing asset. This unit best serves an investor seeking high immediate yield over capital growth, given the building’s recent sales history. Proceed with the clear understanding that this is a pure income play, as the comparable sales data reveals a persistent risk of capital depreciation. Units in this building have consistently transacted at prices between $90,000 and $175,000 and have recorded negative annual growth over holding periods from two to twenty-one years. Your acquisition cost is therefore critical; paying above the recent sales band entrenches your exposure to this depreciation trend. The opportunity lies in securing the unit at a price that locks in a defensible yield to offset stagnant values, targeting the upper range of the demonstrated yield spectrum. Given the high turnover and investor concentration, treat this as a short-to-medium term holding to harvest rental income, with an exit strategy predicated on yield attractiveness rather than significant equity gain. Recent sales within the same building provide a clear value benchmark: – Unit 607 (1 bed, 1 bath, 2 car): $90,000 (Feb 2025) – Unit 505 (1 bed, 1 bath): $100,000 – Unit 412 (1 bed, 1 bath): $99,000 – Unit 501 (1 bed, 1 bath, 1 car): $175,000 – Unit 309 (1 bed, 1 bath, 1 car): $91,000 This data confines the likely market value for your subject unit to the lower end of the $90,000-$175,000 range, firmly establishing that comparable 1-bedroom units without significant differentiation have not exceeded $100,000 in recent years. The $175,000 sale is a clear outlier and should not be used as a valuation guide.