Converted warehouse on Hargreaves Street.

Ben Hurley

Melbourne’s first suburb remains one of the city’s most interesting places to live. Fitzroy is home to the famous bohemian enclave of Brunswick Street and draws an eclectic mix with its arts scene, speciality shops, cafes and small bars.

Who buys

The housing varies from new apartments to period homes and warehouse, factory and church conversions. The properties form a fertile ground for artists and other creative types, but in recent years it has also attracted young professionals.

“It’s an area that appeals to young lawyers and bankers because they can walk to the top of Collins Street [in the CBD],” says Nelson Alexander agent Arch Staver.

“It has quite an eclectic mix – there’s a combination of the arts, and of academia because of its proximity to a number of universities. It has considerable wealth and considerable poverty as well with the Housing Commission flats in the area. Somehow it just works.”

In focus

Staver is selling a three-bedroom warehouse conversion that is typical of the diverse property on offer in the suburb.

The red-brick building at 5 Hargreaves Street has a security entrance that incorporates its 1879 foundation stone, with big marble slabs in the bathrooms and views over the surrounding area from upstairs .

He is seeking between $1.3 million and $1.4 million, making it cheaper than some other warehouses. Last year he sold at least two warehouse conversions for about $2.5 million.

The suburb has a median house price of $842,000 and homes are so in demand that price growth has not abated despite broad falls across the city in recent months.

“It’s one of the more resilient suburbs,” says Staver. “There isn’t a great deal of supply and demand remains fairly strong. What nearly always happens with Fitzroy is that when property isn’t performing as well as it has been, people just don’t sell.”

But he says apartments haven’t fared as well and a surge of new developments in the area are giving investors and owner-occupiers plenty to choose from.

Market overview

Herron Todd White Melbourne managing director Tony Kelly says this inner suburb is characterised by mainly renovated single-fronted Victorian terrace houses.

“Over the last decade many of the local warehouses have been converted to residential use and these tend to be popular,” he says.

“The many restaurants, nightlife and proximity to the city make Fitzroy a strong rental market.”

Kelly says Fitzroy’s market has performed reasonably well, like most of Melbourne’s inner suburbs, with the downward adjustment of 12 months ago now mostly recovered.

“There’s been a steady growth in demand and capital values for Fitzroy property over the past five years and it is difficult to see why this trend would not continue over the medium term.”

The Australian Financial Review