A Glenferrie Road, Hawthorn investment has sold at a fiercely contested auction as strong results continue to flow through Melbourne’s commercial real estate market.

Fitzroys’ Ben Liu, Chris James and David Bourke managed the auction campaign of 556-558 Glenferrie Road, Hawthorn, which sold for $2.45 million.

The sale price reflected a sharp yield of just 3.8%.

Offered for the first time in 50 years, the imposing corner freehold comprises two interconnected period buildings refurbished to provide boutique office accommodation, on a triple-fronted, Commercial 1-zoned site of 372sqm with on-site parking.

A local private investor adding to their portfolio was the buyer of the fully-leased property.

Liu noted that the auction was fiercely contested by four bidders.

“This is yet another really strong auction result for Melbourne’s commercial real estate market in 2025,” he said.

“We’re continuing to see a greater depth of enquiry and competitive tension in our campaigns and at our auctions as the year has progressed. There has been particular depth from private and self-managed super fund investors for these types of opportunities.”

Bourke said, “Investors are showing a clear confidence in demand for commercial space in Melbourne’s inner east.

“The region’s fast-growing office market is supported by increased residential development, flexible working arrangements, good accessibility and excellent hospitality and lifestyle amenity close by, such as the Glenferrie Road, Hawthorn retail strip.”

James noted that there are excellent transport linkages with trams operating nearby on Glenferrie and Riversdale Roads, to go with Hawthorn and Kooyong stations, as well as key roads and arterials.