$17.25m Sale of “Perfect” Corner is One of South Melbourne’s Biggest in Recent Times

The $17.25 million sale of the “perfect” corner site is one of the biggest seen in fast-evolving South Melbourne in recent times, and reaffirms the strong momentum of Melbourne’s commercial real estate market through 2025.

Fitzroys’ Mark Talbot, Tom Fisher and Lewis Waddell, in conjunction with CBRE, sold 131 Cecil Street & 304 Coventry Street, South Melbourne - directly opposite South Melbourne Market - via an Expressions of Interest campaign.

The agents acted on behalf of a Melbourne family who had held the property for 45 years. The sale price came in well above expectations, and equated to a high land rate of $12,402 per sqm.

“Our competitive campaign generated more than 100 enquiries and 12 Expressions of Interest, with interest coming from private investors, syndicates, developers and occupiers from around Melbourne and Australia, as well as offshore,” Talbot said.

“A local investor who knows the South Melbourne area well was the purchaser, attracted to the property’s excellent corner location directly opposite the famous South Melbourne Market, its close proximity to the CBD, highly regarded tenants and future development potential.”

The property is on a city-fringe landholding of 1,391sqm with triple street frontage of approximately 115 metres and favourable Commercial 1 zoning. It comprises a two-level, 1,963sqm building that is fully leased to Australia’s largest family-owned and operated hospitality equipment and kitchen supply store, Chef’s Hat - in occupation for 27 years - and national homewares retailer Bed Bath N’ Table for a total net return of $748,040 per annum plus GST after land tax.

The long-term Chef’s Hat lease runs until the end of March 2026 and Bed Bath N’ Table’s lease is now a monthly overhold, and it is understood the investor will renegotiate the leases with the tenants.

“This was one of Melbourne’s best commercial real estate offerings for 2025,” Talbot said.

“This was the perfect corner opportunity, ideally positioned in one of Melbourne’s most vibrant and fast-evolving inner-city precincts. South Melbourne ticks all the boxes - offering quality lifestyle and hospitality amenity, high accessibility, and home to strong residential and commercial development pipelines that are underpinning trade and activity prospects.

“Astute investors are considering South Melbourne to be Melbourne’s next Cremorne.”

This retail hotspot is anchored by the South Melbourne Market, a beloved institution which attracts over 5.5 million visitors annually, while Coventry Street is one of the city’s most popular lunchtime strips. Close by are the popular Clarendon Street shopping and lifestyle strip - featuring Coles and Woolworths supermarkets - and Cecil Street, which together host a diverse mix of boutique retailers, cafés, and specialty stores, offering everything from designer homewares to artisanal French pastries.

Nestled between Albert Park Lake and the Royal Botanic Gardens, the site enjoys proximity to Melbourne’s most iconic green spaces and cultural landmarks, including the Arts Centre, NGV, and Southbank’s entertainment precinct.

The last commercial real estate sale at this level in South Melbourne was the $17.5 million sale of the Coles supermarket at the bottom of the R.Iconic tower at 263 Normanby Road in 2023, which was also handled by Fitzroys.

“This is yet another sale demonstrating a clear confidence from the market in the prospects of well-located commercial real estate investment opportunities in Melbourne,” Fisher said.

“We’ve seen that momentum building throughout 2025. We’re seeing more depth of enquiry and more competitive tension in campaigns across a range of price points. Deals are being done.”

$26m+ in South Melbourne Sales

The sale of 131 Cecil Street & 304 Coventry Street comes hot on the heels of Fitzroys’ Talbot and Fisher selling another South Melbourne corner property, at 168-174 Dorcas Street, for $5.51 million.

The Expressions of Interest campaign generated more than 75 enquiries, with six expressions received. A land banking investor won out from occupiers and developers for the property, which comprises a prominent two-level building of 1,077sqm, plus basement car parking for 18 cars. It is on 694sqm site with extensive street frontages and side road access, zoned Commercial 2.

The property was offered with holding income, with the ground floor leased to CDS Worldwide Pty Ltd since 2009.
Fitzroys has also just sold the retail building at 279 Clarendon Street in South Melbourne, with a short-term lease profile, for $2.24 million and on a very high land rate of $17,683 per sqm, as well as 442 Clarendon Street to an interstate owner-occupier for $1.235 million.

Waddell said South Melbourne benefits from tram routes along Clarendon Street, Ferrars Street, Park Street and St Kilda Road, and easy vehicular access via Kings Way linking to Queens Road, St Kilda Road, and major arterials including CityLink, West Gate Freeway, the South Melbourne Light Rail and Monash Freeway. The new Anzac Station, part of the Metro Tunnel project, will be opening nearby in the coming months.

Meanwhile, in a reflection of the broad appetite for residences and workplaces in South Melbourne, construction on major mixed-use projects including Hacer’s 162-180 Clarendon Street and 182-200 Clarendon by Lowe Living is currently underway, with both enjoying strong end sales rates. The projects follow on from a number of key commercial developments, including Deague’s 101 Moray, 122 Moray Street and The Terraces by Fortis, Eastern Road by I&D Group, Hickory’s Market Lane, and BVIA on BANK.

South Melbourne also has a front-row seat to the evolution of the adjoining Fishermans Bend precinct - Australia’s largest urban renewal project, forecast to be home to around 80,000 residents by 2055.

Record Set for Geelong CBD Medical Investment Property Amid Interest Across Australia

A new commercial property record has been set in Geelong’s CBD for a medical grade asset, as the city grabs the attention of investors across Victoria and beyond.

Fitzroys’ Chris Kombi, Lewis Waddell and Ben Liu, in conjunction with Darcy Jarman’s Andrew Prowse and Tim Darcy, handled the sale of the BUPA Dental clinic building at 118-120 Ryrie Street, Geelong acting under instructions of leading Commercial Property Transaction Manager, Advise Transact.

The offering of 118-120 Ryrie Street in Geelong, a property leased to BUPA Dental generated more than 150 enquiries, with bidding from investors across Victoria, South Australia, NSW and Queensland, as well as offshore, leading to a $3.83 million under-the- hammer sale.

Competition between the bidders pushed the sale price more than $500,000 beyond the reserve. The sale price, a record paid for a commercial investment property in Geelong’s CBD, reflected a tight 4.5% yield and a high land rate nearing $15,000 per sqm.

A Melbourne-based investor was the successful purchaser after intense bidding not seen in a number of years outbid several other investors to secure the property.

“There’s a clear confidence in the market for well-located commercial real estate property,” Kombi said.

“We’ve seen that momentum growing throughout 2025. There’s been a greater depth of enquiry to our campaigns, with more bidders competing at our auctions, creating a heightened competitive tension that is leading to record sales.”

Kombi said the Geelong CBD had been witnessing a generational wave of government and privately-backed development to go with strong population growth in recent years.

“The huge interest and strong result is another demonstration of the attention the Geelong CBD is gaining from around the state and beyond,” he said.

The CBD is currently seeing Bill Votsaris’ Batman Group redeveloping the Lloyds Corner on Moorabool Street, while Hamilton Group has two projects alongside the Geelong’s mall – The Regent building on Little Malop Street, and the Bright and Hitchcock former department store building, also on Malop Street.

Recent times have seen the addition of a 14-storey major offices for Worksafe as part of $500 million of commercial projects by Quintessential Equity. Another 14-storey office tower is set to be delivered by Plenary Group and Quintessential Equity as part of the $294 million Geelong Convention and Exhibition Centre project, which will see redevelopment of a 1.6ha waterfront site and include a 1,000-seat venue, two large exhibition spaces, meeting rooms, conference facilities flexible event spaces, new retail and hospitality offerings, a large public plaza and a new 200-room Crowne Plaza hotel.

The project anchors the $500 million Geelong City Deal, a collaborative plan by the federal government, Victorian government, and the City of Greater Geelong to revitalise the city.