604/639 Little Bourke Street, Melbourne VIC 3000

CBD 1-bed unit | tenanted to 2027 | high yield ~7.4% | heritage overlay | prime central location. This unit presents a set-and-forget investment proposition with a locked-in tenancy providing immediate income certainty in a blue-chip CBD location. Its competitive strength lies in the combination of a below-market rental, fixed until April 2027, against a purchase price that generates a gross yield notably above the Melbourne apartment average. This configuration serves the disciplined investor seeking a low-maintenance holding with minimal vacancy risk, positioned within walking distance of major universities and transport, which perpetuates demand from its core demographic of young professionals and students. The modern finishes and low-maintenance layout are standard for the building type but are appropriately matched to tenant expectations. The decision hinges on accepting illiquidity and constrained growth for predictable cash flow. The heritage overlay limits capital improvement potential, while the shared 950m² land title and lack of parking are perpetual value caps. The primary opportunity is commercial: acquiring a tenanted property at a yield that compensates for these limitations, with a logical hold strategy through the lease term to avoid transaction costs. Proceed only if the current yield adequately prices in the unit’s long-term submarket position, as future capital appreciation will rely on broader market movements rather than asset-specific advantages. Recent sales activity within the complex was reported in the 2013-2014 financial year, with this specific unit last selling for $312,000 in May 2014. While direct, recent comparables in the building are not provided, other CBD transactions noted include units at 6/24 Little Bourke St, 40/24-38 Little Bourke St, and 2401/8 Downie St, among others, though without pricing or dates. This lack of precise, recent comparable sales within the complex makes definitive valuation benchmarking difficult, placing greater emphasis on the income-based assessment of value. The 2014 sale price anchors historical value, but the current price must be justified by its present income profile against the broader, albeit less specific, CBD apartment market.