Lively Auction Sees Melbourne’s Prime Shopping Strip Market Pass Another Early 2024 Test

Posted on 10th April 2024

Melbourne’s prime shopping strip investment market has passed another early test for 2024, with the home of a new local favourite in what Time Out declared one of the “World’s Coolest Neighbourhoods” selling for $3.38 million at a lively auction.

Fitzroys’ Chris Kombi, Ervin Niyaz and Ben Liu sold 98-100 Lygon Street, Brunswick East under instruction from Advise Transact, after a campaign that generated more than 70 enquiries and culminated with four bidders competing at the auction.

The sale price reflected a tight 4.7% net yield. The property has a 10-year lease plus options to highly-experienced hospitality operators trading as popular new venue Maggie’s Snacks & Liquor.

“Investors recognised this as a set-and-forget inner-city gem,” Kombi said, adding that the campaign attracted both investors and landbankers.

“The result was a strong campaign and a fiercely contested auction with four bidders competing,” he said.

“Investors were attracted to the high-quality new fit-out and tenancy covenant, with a 10-year lease to renowned hospitality operators who have quickly proven their credentials again with the early success of their new venture.”

Maggie’s Snacks & Liquor is the newest hospitality offering to Brunswick East, which influential global publication Time Out recently ranked as sixth on its list of “Coolest Neighbourhoods in the World”.

Lygon Street, Brunswick East is home to an array of hospitality institutions that draw consistent and loyal patronage from the neighbourhood and across wider Melbourne. Nearby are Old Palm Liquor, Bahama Gold, The Alderman, Bar Idda, 400 Gradi, The B.East, and Mr Wilkinson, just to name a few.

“The strip has really emerged in recent years to become a key part of Melbourne’s world-famous inner north hospitality and culture offering,” Kombi said.

He added, “The surging location has multiple residential towers that have boosted the captive local catchment and local trade, which will benefit further in the coming years from more low, medium and high-density development in the pipeline.”

Niyaz said, “This offered the extremely rare chance to acquire 345sqm of prime inner-north land with a dominant street frontage of over 10 metres to Lygon Street.”

The location also offers excellent connectivity and exposure with trams 1 and 6 stopping directly outside the property and 22,000 cars passing by daily.

Melbourne’s prime shopping strip market opened 2024 with a strong result, with the Lygon Street, Carlton newsagency in the heart of the famous precinct selling on a tight 4% net yield. Fitzroys’ Mark Talbot and Shane Mills sold 325 Lygon Street, Carlton for $1.78 million on behalf of the Saffar and Durlacher families. The property’s current seven-year lease ends 31 January 2025 with two further terms of five years each.