Substantial Inner-North Apartment Complex Site Sells For $430,000 Above Reserve

Posted on 06th July 2023

A large 1,170sqm landholding and with a 20-unit apartment complex in the lifestyle hotspot of Thornbury has sold for the first time in 60 years, to a Sydney-based buyer for $3.53 million - a massive $430,000 above reserve - demonstrating the national appeal of Melbourne’s inner north.

Fitzroys’ Mark Talbot and Ervin Niyaz sold 12 Dundas Street under the hammer on behalf of the vendor whose family originally built the property.

The auction campaign generated more than 120 enquiries and culminated in four bidders contesting the auction.

The sale price reflected a sharp 3.3% yield.

Talbot said the buyer intends to refurbish the property, hold it as an investment and enjoy the income.

“Rents are on the way up and will continue to be while Melbourne is experiencing historically low vacancy rates amid a housing shortage - with the inner-north market particularly tight.”

“Australia is forecast to receive a record intake of migrants with 400,000 expected this financial year and 315,000 in the following year, and many will come to Melbourne and initially be looking to rent.

“The shortage of housing and record migrant intake will put further upwards pressure on demand for new dwellings and likely continue to flow on to rents, making this an opportune acquisition.”

He added that many people are looking to live in well-connected inner suburbs close to hospitality and lifestyle amenity, particularly at a time of flexible working arrangements.

The site is immediately opposite Woolworths and Aldi supermarkets and is a short walk to hugely popular High Street, and notable traders including Little Henri, Umberto Espresso Bar, Barton Fink, Cedar Bakery, Thornbury Theatre, Short Round, and a plethora of local and established businesses.

The property is also surrounded by a number of completed and pipeline developments that are bringing greater vibrancy and foot traffic to the area, and is in close proximity to Thornbury train station plus excellent tram and bus transport options.

“We had enquiry from locals, buyers across Melbourne and across Australia, leading to a very strong result $430,000 above the reserve. Melbourne’s inner north has a reputation across the country as an excellent lifestyle destination and an excellent place to invest,” Talbot said.