Mordialloc, VIC - Cashflow & Holding Cost Report

Mordialloc: Suburb Profile & Investment Summary

Beachside Mordialloc (City of Kingston) offers strong owner-occupier appeal and tight rental demand, with median prices around $1.316m for houses and $692k for units. Gross yields sit near ~2.9% for houses and ~4.3% for units, reflecting a capital-growth-led market more than an income play. Vacancy across greater Melbourne was ~1.7% in May 2025, indicating a still-tight rental market backdrop. Connectivity is excellent via the Frankston train line and the Mordialloc Freeway (opened 21 Nov 2021), improving access across the south-east.

• Pros:

  • Beachside lifestyle with strong amenity (pier, SLSC, trails) that underpins long-term demand.
  • Clear transport links: Frankston line to the CBD and new freeway improving road travel times.
  • Units offer comparatively higher yields than houses (~4.3% vs ~2.9%), useful for cash-flow balance.
  • Tight broader-Melbourne vacancy supports rental continuity and rent-growth potential.

• Cons:

  • High entry price for houses (~$1.3m median) limits affordability and pushes up land tax/holding costs.
  • House yields sub-3% mean negative gearing risk without strong capital growth.
  • Stock can be limited and days-on-market can fluctuate with sentiment, impacting deal flow.
  • Broader Melbourne vacancy has edged up from 2024 levels at times in 2025, which could soften rent growth if sustained.