Cafe culture along Chapel St is a major draw card for many of the city’s young high-income earners. Picture: Grace Frost.
Melbourne’s young and rich are skipping Toorak and Brighton in favour of once “rough” and undesirable inner suburbs as they chase an easy commute, good coffee and nightlife.
And the decision has those earning thousands of dollars a week rubbing shoulders at the supermarket with some of the city’s poorest residents, living in nearby public housing and poverty.
A pocket of the city’s inner east around Cremorne, Prahran, South Yarra and Richmond is home to the highest share of workers under 35 earning at least $3000 a week.
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The four areas accounting for 2.22 per cent to 3.97 per cent of the state’s population in that bracket, with more than 1000 in the Cremorne region that’s possibly best known as the home of the Nylex Clock and a big Victoria Bitter sign.
Docklands, Collingwood, Southbank, Caulfield and Fitzroy also make the top 10 areas being sought out by affluent young workers.
It’s in the latter that jeweller to the stars Millie Savage is preparing to sell a $2.25m-$2.35m home at 44 Bell St.
The 30-something’s designs have been worn by Miley Cyrus and Chapell Roan.
Jeweller to the stars Millie Savage has been living in Fitzroy where she headquarters her business.
The 44 Bell Street, Fitzroy, home is listed for north of $2m.
Stop Renting Australia conducted the analysis identifying the trend.
Founder Shawn Waugh said with young high income earners an important group when it came to reshaping housing markets, their high presence around lifestyle and employment hubs suggested a desire for a convenient life.
“Melbourne’s young high earners cluster around the city’s most vibrant and walkable precincts,” Mr Waugh said.
“These areas are cultural and employment hubs – and increasingly, they’re also where housing competition is fiercest for young buyers.”
He added that the high-income earners would mostly be working in finance, consulting, creative industries and for technology firms.
Top Melbourne Area’s for the Young and Rich
Richmond (South)-Cremorne: 1011 — 3.97%
Prahran-Windsor: 925 — 3.65%
South Yarra (North): 610 — 2.39%
Richmond (North): 567 — 2.22%
Docklands: 557 — 2.18%
South Yarra (South): 521 — 2.04%
Collingwood: 499 — 1.96%
Southbank (East): 461 — 1.81%
Caulfield (North): 441 — 1.81%
Fitzroy: 434 — 1.7%
Covers SA2 regions with the highest number and share of people under 35 earning at least $3000 a week.
Source: ABS Census, Stop Renting Australia
City of Yarra mayor Stephen Jolly said the idea of Collingwood, Fitzroy or Richmond being desirable would have been laughable 50 years ago when the suburbs had a reputation for being “rough”.
But while being walking distance to the CBD, as well as having their pick of night-life hot spots, the area’s well-heeled younger residents would also be bumping into some of Melbourne’s poorest residents from the municipalities extensive public housing.
This stylish one-bedroom apartment in Cremorne will set you back $400,000-$440,000.
A house like 8 Tudor St in neighbouring Richmond comes with a $1.25m-$1.35m price guide.
“It’s like Manhattan being cheek to jowl with the Bronx, you have people in poverty and people living the good life,” Mr Jolly said.
“But if you are loaded and you are young, it’s a way more interesting place to live than other areas like Toorak. There’s restaurants and nightclubs and boutique shops and tram lines galore.”
Cremorne topping the list likely reflected a high share of technology industry jobs in the area.
The mayor added that the City was aiming to ensure many of the young and wealthy residents stayed on longer term, too, with plans to increase child-friendly amenities like parks, and bringing more festivals to the area.
Belle Property’s Andrew James said young and wealthy buyers had become a “mainstay” of Stonnington’s unit and single-fronted house markets — helping to keep the suburbs moving after investors began dropping out a year or so ago.
48 Pridham St, Prahran, is the kind of home Mr James said young high-income earners are looking for, it’s listed with a $1.4m-$1.54m.
16/87 Caroline St, South Yarra, offers a more affordable entry to the Stonnington municipality with a $390,000-$429,000 asking price.
“Well over 50 per cent (of buyers) would be 35 and under,” Mr James said.
“And especially in Prahran, Windsor and South Yarra.”
The agent added that with inner Melbourne hugely popular among renters at the moment, many were now choosing to buy a home rather than pay a landlord’s mortgage.
Boutiques, eateries and especially cafe culture along Chapel St and Greville St were drawing many to the area, Mr James said.
Public transport, access to the CBD and popular night spots, like the Mt Erica Hotel, were also drawcards.
“And there’s definitely a cross-section of different industries that people are working in who purchase … but for most it’s down to those with good job security,” he said.
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