Studio apartments and other small units (especially those under 40 sqm) are a unique category within Melbourne’s investment property market. As someone who’s sold many such assets, I know they come with specific challenges—lender restrictions, fewer buyers, and misunderstanding from many agents. Here’s my numbers-driven guide for how to sell a studio apartment to an investor (even when others can’t).

1. Acknowledge the Lending and Buyer Pool Challenge
Studios under 40 sqm often face tougher lending criteria, either requiring higher deposits or only qualifying for certain lenders. I always set expectations upfront with vendors—success comes from targeting the buyer who values the yield, not waiting for buyers attracted by the price alone.

2. Focus on the Yield, Cash Flow and Actual Numbers
The right investor is chasing a combination of rental return, strong demand, and overall numbers that match their portfolio. I prepare a full rental appraisal (weekly rent, vacancy, current tenant profile), owners’ corp breakdown, and evidence of historical cash flow so buyers can make informed decisions.

3. Professional Presentation Still Matters
Investors still care about presentation—maintenance, a coat of paint, clean finishes, and updated fixtures all support better outcomes.

4. Disclose Outgoings and Risks Early
Successful sales for studios require honesty about owners corp, outgoings, or any quirks that come with city apartments, such as special levies. This reduces renegotiation risk at the contract stage.

Case Study
A recent sub-40 sqm studio struggled for months with broad advertising and no offers. Focusing instead on yield-driven investors, I matched the property to a single buyer inspecting exclusively for cash flow. Together with upfront transparency about the numbers, we secured a sale quickly.

Summary
Studios demand a sharp, numbers-focused strategy. If your agent doesn’t understand the buyer mindset for small investments, keep searching.

For specialised advice on selling studios and investment apartments, contact Genneva Smarrelli at http://collings.com.au/contact.