News

High Potential in High Street Prompts Buyer Rush

Posted on 03rd April 2019

01

674 High Street, Kew East

Strong demand for retail assets in Melbourne’s inner east has seen a vacant shop in the tightly held Kew East Village precinct snapped up before auction.

Chris James and David Bourke of Fitzroys sold 674 High Street for $1.2 million to a local buyer.

The sale price reflected a sharp 2.5% yield on a current market rent.

“The purchaser jumped at the chance to acquire a property in a strong-performing village precinct in Melbourne’s inner-east, with an eye on capitalising the property’s high potential over the long-term,” James said.

The property was offered with a vacant possession, featuring a building of 65 sqm on a 311 sqm site zoned Commercial 1 with on-site parking and rear access via ROW.

James said the property’s versatility, future upside and location attracted a broad range of enquiry from investors, owner occupiers and developers alike.

“Harp Village has boasted low vacancies for some time, and offers a mix of vibrant local retailers, restaurants and cafés including The Friendly Grocer, Di Palmas, and Vicky’s Pizza, as well as Bendigo Bank and Australia Post.”

James said the range of buyer profiles interested in the property reflected confidence in Boroondara’s future prospects, spurred by a strong residential development pipeline that has underpinned growth in the immediate catchment and boosted trade in the area.

James and Bourke have just sold the two-storey retail building at 849 Burke Road in Camberwell for $1.675 million at a 4% yield following enquiry from around Australia.

Meanwhile, the deal marks yet another vacant retail asset changing hands across Melbourne, and the second in a tightly held village location in a week. Fitzroys has also just sold a two-storey Newport Village freehold in the western suburbs for $875,000.

Bourke said vacant retail properties have been trading strongly in recent months, despite the tightened lending conditions encouraging investors to seek tenanted assets.

Fitzroys sold a number of vacant properties right across Melbourne in latter part of 2018, including Moonee Ponds buildings at 127 Puckle Street, to a dental clinic, and 85 Puckle Street to an investor at the end of the year.

They followed Fitzroys’ sales of the former premises of Brighton icon Wild Holly Cakes on Bay Street, a former Commonwealth Bank branch in Keilor, 241 Bridge Road, Richmond at an accounting firm, and a 917 High Street, Thornbury to a local food and beverage operator.