Park Street Tram Extension Lifts Nearby Property Values in South Melbourne

The Park Street tram extension opened for full operations on June 15 and has lifted median sale prices on adjacent blocks by 8 per cent in the first three weeks of data collection.

The $45 million project, approved by City of Port Phillip planners in late 2024, adds three stops and direct links to the 96 route. It comes as buyers seek shorter commutes amid higher fuel costs and tighter lending rules that favour properties with proven transport access.

Strength near market and arts sites

Properties within walking distance of the South Melbourne Market on Coventry Street and the Gasworks Arts Park on Pickles Street recorded the strongest early gains. Local agents noted three contracts exchanged above reserve on Park Street lots in the first fortnight after opening, with the South Melbourne Traders Association logging a 22 per cent rise in buyer inquiries at its June open day.

Domain records show the median price for three-bedroom houses on Park Street moved from $1.45 million in December to $1.57 million by the end of last month. Auction clearance rates in the same pocket reached 78 per cent, compared with 61 per cent across the broader South Melbourne postcode in the same period.

Buyers advised to act before next phase

Construction crews are already preparing the second stage, due to reach Ferrars Street by early 2027. Agents at the local branch of Nelson Alexander recommend buyers review listings along the current extension first, as data from the first stage shows the largest value jumps occur within 200 metres of new stops in the initial six months of operation.

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.