Prime Centre Road Investment Sells 25% Above Reserve

Posted on 10th July 2024

Melbourne’s shopping strip investment market has passed another test in 2024, with a Centre Road, Bentleigh retail premises selling under the hammer for $2.115 million - some 25% above the vendor’s reserve - and on a sharp 3.5% net yield.

Fitzroys’ Chris Kombi, Tom Fisher and Ben Liu 刘犇 sold 371 Centre Road, Bentleigh, which has a long lease to national mortgage broker Aussie Home Loans.

The property comprises a 165sqm two-storey building on a 215sqm site just metres from Bentleigh train station and backing on to a large public car park.

Kombi said the campaign generated a strong depth of enquiry, culminating in multiple bidders competing for the property, which pushed the sale price well above the vendor’s reserve.

“There is clearly an investor appetite for Centre Road, Bentleigh at the moment, which has been one of the best-performing shopping strips in Melbourne in recent years,” Kombi said.

According to Fitzroys’ most recent Walk the Strip report, Centre Road, Bentleigh has consistently recorded a vacancy rate clearly below the Melbourne-wide average over the past several years. In 2023, it had a low vacancy rate of 5.2%.

“Centre Road has proved the power of a triple-supermarket offering, which has underpinned a constant stream of shoppers from a broad catchment throughout trading hours,” Kombi said.

“The State Government’s rail crossing removal initiative has also made a huge impact on the strip, enhancing its already-high accessibility by way of a large volume of on-street and Council car parking, Bentleigh train station and multiple bus routes.”

The property is the fourth Fitzroys has sold on Centre Road, Bentleigh in recent months. They include the $6.7 million sale of the childcare centre property at 263-265 Centre Road, occupied by Evolve Early Learning.

Fisher said Melbourne shopping strips continue to offer strong investment credentials.

“Flexible working-from-home arrangements have seen Melburnians spend more time than ever at their local villages, supporting trade,” he said.

“Melbourne shopping strip investments evidently remain in strong demand and quality opportunities are being snapped up.”