Smith Street Soars: Collingwood's Growth Corridor Suburb Draws Investors with Major Infrastructure Upgrades

New tram lines and a revitalised precinct on Smith Street are turning North Collingwood into a hot prospect for investors and owner-occupiers, with property activity spiking around key infrastructure corridors in the past twelve months.

These upgrades have arrived at a critical moment for Collingwood. With housing demand outpacing supply since 2025, the suburb’s northern fringe-bordering Fitzroy North and stretching toward Queens Parade-has emerged as the local property market’s stand-out performer. Buyers are circling newly completed apartment projects and heritage warehouses close to the transforming Smith and Wellington Street intersection, drawn by enhanced connections and new retail energy.

Infrastructure Fuels Local Appeal

The incoming Route 12 tram extension, which will directly serve the section between Alexandra Parade and Johnston Street, is a key driver of the shift. Meanwhile, the Collingwood Arts Precinct-a cluster of converted factories along Perry Street-has attracted both new residents and creative businesses. Cafes like Everyday Coffee on Sackville Street, along with the fresh produce vendors at Peel Street Market, are seeing increased foot traffic tied to construction crews and visitors. The City of Yarra’s community-led improvement program, launched in late 2025, has directed extra street cleaning and lighting upgrades into this corridor.

Local schools, including Collingwood College on Cromwell Street, have responded to the area’s population uptick by expanding their enrolment capacity for 2027. The north-south cycleway on Wellington Street, opened in February, has further improved connectivity for residents commuting towards the CBD.

Price Movement and What’s Next

According to recent figures from Domain, median unit prices in Collingwood reached $731,000 in Q2 2026, marking a 9% increase since the same period in 2025. Major projects such as the Cornerstone Residences, a 110-apartment complex on Hoddle Street completed in May, have posted rapid off-the-plan sales. Local agents note that two-bedroom units within walking distance to the new tram stops are attracting both young professionals and downsizing retirees, with rental yield edging above 4.1% according to latest council data.

Next, the City of Yarra is set to roll out streetscape upgrades along St Georges Road, connecting Collingwood and Clifton Hill, with works planned from September 2026. Savvy buyers are watching for opportunities along secondary streets with heritage stock or potential for boutique townhouse redevelopments. For those considering a move or investment, local experts recommend focusing on proximity to recent or upcoming infrastructure-properties within 400 metres of the Smith Street tram extension are expected to hold their value as the precinct matures.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.