Five Bidders Push Dandenong Showroom $700k Beyond Reserve

Posted on 11th April 2024

Five bidders have fiercely contested the auction of a high-exposure Dandenong showroom, which sold under the hammer for $3.18 million - more than $700,000 above reserve.

Fitzroys’ Tom Fisher and David Bourke sold 147 Lonsdale Street, Dandenong on behalf of a private owner, following a campaign that generated more than 50 enquiries.

The property was offered with a short-term lease to Drummond Golf. It comprises a 720sqm open-plan showroom on a dominant 1,309sqm site with nearly 21 metres of frontage to the busy Lonsdale Street/Princes Highway thoroughfare, with favourable Comprehensive Development Zone - Schedule 2 zoning.

The purchaser is a New Zealand-based clothing group that will occupy the property.

“We had really strong interest and competition between investors and owner-occupiers given the site’s high exposure to the southern gateway of the Dandenong CBD, and the result was a sale under the hammer at more than $700,000 above the reserve,” Fisher said.

He said the short-term lease provided plenty of flexibility and a strong holding income.

“The proposed works for the Dandenong underpass at the site next door offered intrigue. There’s huge potential upside for further site activation and exposure through the proposed Cheltenham Road extension.

“The purchaser now has an excellent high-profile showroom in the bustling Dandenong retail and commercial precinct with even further upside to exposure.”

The works are among those slated to form the next phase of the Victorian Government’s multi-billion-dollar Level Crossing Removal Project. They will see the extension of Cheltenham Road below the train line, to meet Lonsdale Street, effectively making 147 Lonsdale Street a corner site.

Bourke said the substantial interest from owner-occupiers was a big vote of confidence in the property’s location.

“The site is at the gateway to the Dandenong CBD and close to Dandenong Square Shopping Centre, Dandenong Market, and a host of lifestyle attractions, already placing it right amongst the action. The further works will enhance the exposure of the site, which already provides easy access to major arterials including Princes Highway, Monash Freeway and Eastlink, as well as Dandenong train station,” he said.