9/42 Porter Street, Prahran VIC 3181

Student housing in Prahran | high yield | long lease secured | near-zero capital growth This is a purpose-built student unit in a tightly held Stonnington building, offering a rare combination of secure income and high gross yield. The existing lease to February 2027 at $320 per week provides immediate cash flow certainty, unusual for a unit in this price bracket. For an investor prioritising yield over appreciation, the property’s configuration as student accommodation with gas kitchenette and balcony options supports consistent tenant demand in a location zoned for multiple schools. The buyer’s position is strengthened by the low entry point relative to surrounding property values. The primary risk is the building’s demonstrated negative capital growth, with recent sales showing annual declines of 0.4% to 1.9% over long holding periods. This means the buyer should expect the property to depreciate in real terms while generating income. The opportunity lies in the 14% gross yield, which compensates for the lack of price growth. The commercial logic is simple: hold for the lease term, collect the rent, and exit when the yield premium narrows or the building’s capital position improves. This is a cash flow property, not a wealth builder.