Balaclava: Demographic shifts and gentrification adding to area's desirability

GUEST OBSERVATION

For many years Balaclava was considered a modest Melbourne suburb compared to many of its more affluent neighbours, like Prahran.

However, in recent times the area has undergone a big transformation - the introduction of a number of new trendy eateries and a $20 million facelift to Balaclava station lending it desirability, style and sophistication.

Unsurprisingly, this has made the suburb quite popular among younger investors wanting to secure property in close proximity to Melbourne’s CBD and its beaches. Bordered by Inkerman Street, Chapel Street and Hotham Street, Balaclava’s demographic encompasses a diverse mix of residents - from young professionals and families, to bohemian artists and musicians. The area also boasts a sizable Jewish community.

Balaclava’s main shopping strip, Carlisle Street, offers residents a selection of amenities including boutique shops and popular cafes like Las Chicas, Batch and the recently opened Glass Merchants – all of which attract long queues year round.

For those looking for evening dining some of the jewels in Carlisle’s crown include Ilona Staller - sister restaurant of St Kilda’s revered Cicciolina, Carlisle Street Wine Bar and Uncle which allows diners to enjoy Vietnamese cuisine on the restaurant’s quirky rooftop terrace.

Those looking for some retail therapy are not forgotten with a number of new boutiques opening recently including A Part of Me, Lulu and neighbouring Little Lulu.

The suburb has a well-connected transport system; with trains from Balaclava station transporting residents into the CBD in less than 15 minutes. The station’s $20 million upgrade has afforded it ‘Premium Station’ status - meaning its platforms are staffed seven days week during train operating hours. The area’s tram network services St Kilda Road and St Kilda beach, whilst Hotham Street operates as a major bus route.

Balaclava’s median property price of $872,500 for a house and $455,000 for a unit, means the area is generally more affordable then its neighbouring suburbs. Over half of the home owners in the area are unmarried and the largest percentage of residents fall into the 25-34 year old bracket. Over 50% of residents reside in a flat, unit or apartment - of which over half are rented. 

The types of property in the area can be categorised as follows:

• Single fronted Victorian worker’s cottages.
• A significant number of Art Deco apartment blocks
• Brick Edwardian homes
• 1950s, 1960s, and 1970s style apartment blocks
• Californian bungalows
• New apartment blocks being developed

Property prices in Balaclava have risen steadily over the past 10 years and given the area is considered a high demand market this is likely to continue.

Selecting an apartment within smaller blocks, looking for unique features and selecting properties with dual street frontages are some tips to investing wisely in the area.

Josh Stirling is director of Hodges Real Estate St Kilda.

Photo of Carlisle Street, Balaclava: Public domain.