Question 1

Is Kensington a nice place to live?

Accepted Answer

Kensington is an inner-west Melbourne suburb with a clear urban village feel and a strong industrial past. Narrow, tree-lined streets sit alongside converted warehouses and rows of Victorian terraces, and a compact village centre has cafés, bakeries and independent shops. The suburb borders Flemington Racecourse and the Melbourne Showgrounds, so major events shape the local rhythm. Residents have easy access to rail services and main roads into the city, and the area attracts a mix of young professionals, families and longer-term locals who value inner-city living and nearby green spaces.

The community is about 10,745 people with a median age of 35, and tenure is almost evenly split, with renters just edging out owner-occupation at 50.2%. Kensington is part of the state’s Big Housing Build, which will retire and replace older high-rise public housing and provide renewed community facilities, and local transport planning and rail-corridor works are active around the Macaulay and station precincts.

Question 2

Is it expensive to live in Kensington?

Accepted Answer

Buying in Kensington sits notably above local incomes as recorded at the last Census. The median house price of $1,114,500 is about 9.7 times a typical local annual household income at the last Census, while the median unit price of $507,500 is about 4.4 times a typical local annual household income at the last Census.

Renting looks different: a house rent of $710 a week would take about 32.1% of a typical local household's weekly income at the last Census (a sizeable share), and a unit rent of $625 a week would take about 28.2% (a moderate share). Whether that feels expensive for you will depend on your own income and circumstances.

Everyone's financial situation is different, so it's important to consider your own circumstances when deciding which suburb is right for you.

Question 3

Is Kensington a good place to invest?

Accepted Answer

The clearest movement in Kensington over the past year is on the rental side for units: unit rents jumped 13.6%. House values climbed a solid 8.2% over the year, while house rents rose a modest 4.4%, so for houses this year capital growth outpaced rental growth. Unit rents also rose much faster than house rents.

If you're weighing Kensington as an investment, the figures show stronger rental gains for units and stronger price growth for houses over the past 12 months. Which of those outcomes matters most will depend on your own goals and circumstances.

This information has been prepared without taking your objectives, needs and overall financial situation into account. It is not meant to be a substitute for professional financial advice. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.

	Houses	Units
Median price Past 3 months	$1.11M	$508K
Change in value Past 12 months	8.2%	N/A
Sold Past 3 months	32	34
Median days on market Past 12 months	41	32
Average rent Past 12 months	$710	$625
Change in rent Past 12 months	4.4%	13.6%

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