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Clayton South vs Montrose

Property investment comparison - Clayton South, VIC 3169 vs Montrose, VIC 3765

Head-to-head across core investment metrics: Clayton South wins 1, Montrose wins 4. The better choice depends on whether you're optimising for cash flow, growth, affordability, or liquidity, the table below highlights the winner on each metric.

MetricClayton SouthMontrose
Median house price$985K$980K
Median unit price$645K-
Gross rental yield (houses)3.43%3.63%
Gross rental yield (units)4.78%3.52%
1-year house growth+1.1%estimate+2.9%
3-year house growth-+15.8%
Vacancy rate1.6%0.3%
Population13,3816,900

Clayton South vs Montrose: what the numbers say

The median house price is $985K in Clayton South and $980K in Montrose, so Montrose is the cheaper entry point, with Clayton South houses about 1% dearer.

On cash flow, Montrose leads: houses there return a gross rental yield of 3.63%, compared with 3.43% in Clayton South, a gap of 0.20 percentage points.

Over the past year house prices moved +1.1% in Clayton South (an estimate) and +2.9% in Montrose, so recent momentum favours Montrose, although both suburbs recorded growth.

Rental vacancy is 0.3% in Montrose and 1.6% in Clayton South, so landlords in Montrose face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Clayton South is the bigger suburb, with a population of 13,381 against 6,900, larger than Montrose; a larger suburb usually means a deeper pool of buyers and tenants.

In short: Montrose for rental income, Montrose for a lower purchase price, Montrose for recent price momentum, Montrose for the tighter rental market. Which matters more depends on whether the investor is buying for cash flow, capital growth or affordability.

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