This brand new double-storey rooming house in Pakenham, within Radisson Park Estate, offers 8 private studio rooms and 8 bathrooms, with 259 m2 of floor area on a new estate lot of 423 m2 and 2 open car spaces. Each room has its own bathroom, robe and a kitchenette with a sink and fridge space, and residents share a kitchen, living and dining area on the ground floor. The package is a two-part contract priced at $1,230,000, made up of land at $429,000 and the build at $801,000.

Pakenham is a growth suburb in the Shire of Cardinia on Melbourne's south-eastern fringe, where new estates such as Radisson Park Estate are adding housing for a growing population. That growth corridor setting supports tenant demand from singles and young workers looking for affordable, newer accommodation close to the city's south-east. Investors can use that demand for room-by-room income in a yield-focused portfolio.

For investors, this rooming house offers indicative rent of about $2,400 per week across all 8 rooms, or $124,800 per annum, a gross yield of 10.15% on the package price.

Single-person households are on the rise, accounting for a significant 25% of all households in Australia. This trend shows no signs of slowing down, and experts project a continued growth in single-person households, reaching an estimated 3 to 3.5 million over the next two decades. This surge underscores the increasing demand for housing options tailored to individual occupants.

Rooming house properties represent a form of shared accommodation, offering private bedrooms with ensuite bathrooms, and often including living and kitchenette facilities akin to a compact, one-bedroom unit or apartment. These properties appeal to tenants seeking affordable, adaptable, and hassle-free living arrangements that align with their lifestyles and requirements.

Many rooming houses are strategically situated in suburban areas, providing proximity to transportation, shopping centers, restaurants, cafes, and community hubs—making them an enticing choice for tenants.

Typical rooming house tenants encompass young professionals, students, digital nomads, entrepreneurs, creatives, and seniors who prioritize convenience, connectivity, and collaboration.

For investors, rooming house properties offer a compelling value proposition. They present a high-yield, low-risk, and forward-looking investment opportunity. Rooming house properties consistently maintain higher occupancy rates, lower vacancy rates, and reduced turnover compared to traditional rentals. This aligns with the burgeoning demand for affordable and flexible housing solutions in urban settings.

Additionally, rooming house properties often boast higher capital growth potential, given their prime locations with access to transportation, education, employment, and entertainment hubs.

Why are rooming houses so attractive to investors?

• High Demand: Rooms are in high demand, ensuring quick occupancy.
• Higher Yields: Often double compared to the suburb average.
• Diverse Tenant Base: Young professionals and older singles generally seek this accommodation category.
• Tax Depreciation: Benefits from fixtures and fittings.
• Income Security: Steady income flow even when one tenant moves out.

Land shown is indicative. The final lot and price will be confirmed upon submission of an EOI.