All the things we love about Kensington

We’ve been purchasing property in Kensington for our clients for over fifteen years. Kensington is a special suburb, revered for it’s friendly community and recognised for it’s fabulous, inner-urban soul. Once home to abattoirs and livestock sale yards and an army ordnance depot, Kensington has transformed to a thriving village with an eclectic mix of housing. The cattleyards are now home to Kensington Banks, a development of nearly 900 townhouses, all built in the late 1980’s and 1990’s. The rest of Kensington boasts some very pretty Victorian houses, new apartments, high and medium density social housing and many factories and warehouses, some of which have been converted to housing.

Some of the prettiest double storey terraces in Melbourne can be found in postcode 3031.

This relatively little suburb is just four square kilometres in size and is home to over 10,000 people.

Over the years, Kensington’s shopping strip, (along Macaulay Road and Bellairs Street) has evolved. Like many inner-urban locations that have experienced rapid gentrification, Kensington’s shopping scene shifted to more of a cafe culture. Getting a table at The Premises on the corner of Macaulay and Bellairs isn’t always easy, and the buzz of chatter and barista noise makes for a vibrant morning coffee or brunch date. For the Kensington Banks residents who don’t feel like trekking into the village, Local Folk on Epsom Road packs a great punch for a nice coffee stop. Kensington’s beer and wine scene has improved in recent years with the introduction of two newcomers. A new brewery called Nubilum Distilling can be found in the industrial end of town. For those who enjoy their wine, Arnold’s has some interesting wines on their wine list, along with great food. Hardiman’s Hotel underwent a significant renovation in 2018 and this local bar’s revival is evident when you drive past this busy pub in afternoon traffic.

Aside from the lifestyle that Kensington offers, one significant change that will positively impact the area is the completion of the Metro Tunnel Project. This addition set of tracks will not only integrate one of Kensington’s three train stations with the new line, but introduce a new nearby inner-ring suburb, Arden.

Kensington’s proximity to the CBD, hospitals, the airport arterial and some of the north/west’s best schools holds it high favour by many. While it’s a family-friendly area, it’s statistically also home to a much younger crowd.

The suburb’s median age was 35, with an average of 2.1 people per household, earning a median weekly income of $2,216, (compared to he state’s average of $1,759.)

We reflect on some of 2024’s favourite assignments, including these three acquisitions in Kensington. Our first exciting assignment was with a lovely investor client whose $1.2M budget was intended for a capital growth asset that could deliver a rental yield above 3%. This three-bedroom brick beauty in the heart of “Old Kensington” now delivers a 3.85% rental return, a compelling figure for a period house in Melbourne.

The second assignment that comes to mind was that of a wonderful rural Victorian couple who wanted to secure a home in the city nearer to their family. This gorgeous Victorian cottage on just over 200sqm and with a garage via rear laneway was a great match to their criteria. We had to identify a property with off-street parking; a challenge that we were happy to take on when we commenced their brief. Secured for $1,050,000, we were quite excited for our clients.

Our final Kensington acquisition for 2024 was arguably one of our most thrilling. Our buyers had a particularly special strategy. They engaged us to help them find their future home. From a cashflow, tax and timing point of view, their strategy focused on an investment approach to start with, but ultimately they plan to inhabit their investment. Their wish-list included the following; a renovated, period Victorian house, an off-street parking option, three bedrooms and a northerly aspect all for sub-$1.5M.

This was no mean feat.

We secured this stunning home off-market for them. We’ve enjoyed working with some past clients in the same street, so it was easy to tell them that they will have some great neighbours too.

Kensington is one of Melbourne’s evergreen suburbs that will always attract residents, young and old. For this reason, it remains one of our favourites.