VNNo products in the basket.
When evaluating the rental potential of any property, there are three core questions to answer: Who will rent it? Why would they choose this place over another? And is that demand sustainable? For Verdé Southbank, all three questions have clear answers — and that is why this project’s rental potential deserves serious consideration.
The Tenant Market: Diverse, Stable, and Continuously Replenished
Southbank is one of the few areas in Melbourne that simultaneously attracts multiple distinct tenant groups — and this is the very foundation of stable cash flow for investors.
The first and largest group is international students. Melbourne is one of the world’s top study destinations, and the area surrounding Verdé is densely surrounded by major universities: the University of Melbourne Southbank Campus just 1.1 km away, RMIT at 2.8 km, Victoria University at 2.1 km, and the University of Melbourne’s main campus at 4.3 km. International students — particularly from Asia — tend to prioritise modern, secure apartments close to their university and public transport. Verdé meets all of those criteria. More importantly, this student population is replenished every academic year regardless of economic cycles — a rare source of consistently stable rental demand.
The second group is professionals working in the CBD and inner-city areas. With the Anzac Metro Tunnel station just 600 metres away, Verdé allows commuters to reach anywhere in the city quickly and conveniently. This tenant group typically has stable incomes, long-term leases, and minimal management issues — ideal for investors looking to minimise operational risk.
The third group is high-end tourists and business travellers. Southbank is the heart of Melbourne’s cultural life — theatres, museums, art galleries, restaurants, and major events run throughout the year. Short-term visitors to the area are willing to pay a premium for a quality apartment, and Melbourne’s packed events calendar — from the Australian Open and Formula 1 Grand Prix to international arts festivals — ensures this demand never runs dry.
Two Strategies, One Property
The strength of Verdé lies not just in having tenants — but in the flexibility it gives investors to choose how they monetise their asset, depending on their goals and timing.
Short-term rental via Airbnb — approximately AUD $400/night
Current market rates in Southbank hover around AUD $400 per night for a quality 2-bedroom apartment. This figure reflects the real supply and demand dynamics of the area, not an idealised projection. With an average occupancy rate of around 65–70% — entirely achievable at an address like Southbank — annual revenue from this model could reach AUD $94,000–102,000, significantly above the developer’s 5% guaranteed return.
The most obvious advantage of this model is flexibility. Investors can use the apartment themselves during business trips or visits to Melbourne, adjust pricing by season and events, and respond quickly to market shifts. However, it is worth noting that short-term rentals require more active management — or the cost of engaging a professional property management firm in Melbourne.
Long-term rental — approximately AUD $900/week
If your priority is stability and minimal management effort, long-term rental is the more suitable option. At a reference rate of around AUD $900 per week — approximately AUD $46,800 per year — from international students or long-term professionals, this model delivers consistent and predictable cash flow.
Beyond stability, this approach also offers tax advantages that many foreign investors have yet to fully utilise. Under Australian tax law, expenses related to rental properties — including asset depreciation, loan interest, management fees, and maintenance costs — can all be deducted from taxable income. This is a tangible financial benefit worth discussing thoroughly with a tax advisor before making any decision.
The 5% Guarantee — A Safety Net for the First Year
Regardless of which strategy you choose, Verdé provides an important layer of assurance: a guaranteed rental return of 5% per year for the first 2 years after settlement, backed by the developer. This means that during the early phase — while you are still learning the market, establishing rental channels, and settling into property management — your cash flow is already secured.
For a 2-bedroom apartment starting from AUD $847,000, that equates to approximately AUD $42,350 per year — a reliable cash flow floor to start from.
The Long-Term View
Verdé’s rental potential does not depend on any single factor — it is built on the convergence of multiple drivers at once: its location within the Arts Precinct, Metro Tunnel connectivity, the density of surrounding universities, and the quality of the apartments and on-site amenities. When the Metro Tunnel becomes fully operational in 2027, the Southbank area is expected to attract a significantly larger population of residents and tenants — and those who already hold property here will benefit directly from that wave.
No investment is without risk, and overseas property is no exception. But when looking at the full picture — location, infrastructure, rental demand, and financial structure — Verdé is one of the rare projects in Melbourne where rental potential is not a promise, but the result of conditions that are already in place.
