Hi,

I have lived in both areas. Southbank is more convenient than docklands. True docklands is a newer neighbourhood.

Regardign rent, i expect southbank to perform slightrly better than the equivalent in docklands. Regarding capital growth, both areas will be about the same.

The golden rule in realestate investing is LOCATION, LOCATION, LOCATION!!! Yes, you probably have heard it many times before, but it cant be overstated.

If its capital growth and rent you are after, then i would go for southbank as it offers a better location than docklands.

Docklands offer better views ( water views), and priobably appeals to a wider crowd than southbank.

Overall, i think there are significant new projects coming online in southbank and this extra supply should ease prices so i would go for southbank over docklands.

In the last 5 yrs, southbank has outperformed docklands and even houses to some degree. Why? simply its location. Southbank is seen as 'the place to be' in melbourne.
I would buy 2 bedroom, 2 bathroom 1 car park apartment in southbank and hold it for 6-9 yrs before selling it. I think the capital gains will be significant ater 6-9 yrs.