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Elwood vs Lorne

Property investment comparison - Elwood, VIC 3184 vs Lorne, VIC 3232

Head-to-head across core investment metrics: Elwood wins 1, Lorne wins 3. 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.

MetricElwoodLorne
Median house price$2M$2.0M
Median unit price$660K-
Gross rental yield (houses)3.00%1.65%
Gross rental yield (units)-4.16%
1-year house growth-9.2%estimate+4.0%
3-year house growth--11.3%
Vacancy rate2.3%0.4%
Population15,1531,327

Elwood vs Lorne: what the numbers say

The median house price is $2M in Elwood and $2.0M in Lorne, so Lorne is the cheaper entry point, with Elwood houses about 1% dearer.

On cash flow, Elwood leads: houses there return a gross rental yield of 3.00%, compared with 1.65% in Lorne, a gap of 1.35 percentage points.

Over the past year house prices moved -9.2% in Elwood (an estimate) and +4.0% in Lorne, so recent momentum favours Lorne, while Elwood went backwards.

Rental vacancy is 0.4% in Lorne and 2.3% in Elwood, so landlords in Lorne face less competition for tenants. Anything under 2% is generally read as a tight market where tenants compete for homes.

Elwood is the bigger suburb, with a population of 15,153 against 1,327, roughly 11 times the size of Lorne; a larger suburb usually means a deeper pool of buyers and tenants.

In short: Elwood for rental income, Lorne for a lower purchase price, Lorne for recent price momentum, Lorne 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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