Kensington is one of Melbourne’s fastest-gentrifying inner suburbs in 2026, with the Arden precinct (Metro Station + 10,000 jobs) under construction just 800m from Kensington’s heart. This is a suburb where yield and growth are converging simultaneously.
Kensington Melbourne Rental Yield by Property Type
| Property Type | Median Price | Median Weekly Rent | Gross Yield | Net Yield (est.) |
|---|---|---|---|---|
| House | $1.05M | $620/week | 3.1% | 2.2% |
| Unit / Apartment | $520k | $430/week | 4.3% | 3.1% |
| Townhouse | $820k | $530/week | 3.4% | 2.4% |
What Drives Rental Demand in Kensington?
Kensington sits between Flemington Racecourse, the Arden Metro precinct, and Melbourne University’s veterinary school. Tenant demand is driven by young professionals, students from Melbourne Uni, and workers at the Royal Melbourne Hospital and Arden employment precinct.
GeeVee Investment Score: 8.0/10
Kensington’s Arden Metro Station (opening 2025-2026) is a once-in-a-generation infrastructure catalyst. Properties within 800m of Arden Station are attracting significant investor interest at current price points that are expected to re-rate significantly on opening.
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