Melbourne has passed the first prime shopping strip retail investment market test of 2026 after multiple bidders competed at the auction of a building in the absolute heart of Glenferrie Road, Malvern.

Fitzroys’ Tom Fisher and Lewis Waddell sold 204 Glenferrie Road for $1.425 million, on a tight yield of 4.5% and high land rate of circa $10,000 per sqm.

The 137sqm double-storey building comprises an open-plan ground floor retail space and first-floor office and storage accommodation, with rear access and on-site parking.

It was offered with a brand-new five-year lease to longstanding, successful tenant Homing Instincts, which has four locations across Melbourne.

“The anticipation for a big year ahead in the market was reflected in the lively auction crowd of more than 50 people,” Waddell said.

“Melbourne passed its first prime shopping strip retail investment test for 2026 in a result that bodes well for the market.”

The buyer is a local who was looking for a set-and-forget investment.

“They live nearby and the new five-year lease to a proven multi-store tenant was attractive,” Waddell said.

“This tells us the strong fundamentals of Melbourne strip retail remain attractive to investors in locations such as Glenferrie Road, Malvern that have a thriving tenancy mix and minimal vacancy, proven further by results showing tight yields of sub-5%.”

The property is surrounded by supermarkets and popular local retailers including Coles, Dan Murphy’s, Zambrero, Messina, Yo-chi and more, in a strip that services an enviable, high-spending catchment comprised of some of Melbourne’s most affluent suburbs.

Glenferrie Road, Malvern was highlighted in Fitzroys’ most recent Walk the Strip report for its strong performance over the past 12 months, owing to its even tenancy mix that attracts heavy pedestrian traffic from a wide catchment throughout the day, providing great support for traders.

Excellent access to the strip is provided by the directly adjoining rear public car park, trams on Glenferrie Road and High Street, and nearby Malvern train station.

Meanwhile, the Victorian Government has just unveiled Glenferrie Road, Malvern as a designated Activity Centre, with developments accommodating new residents of ranging from up to eight and up to 16 storeys set for on and around the strip in the coming years.

Waddell said the future intensive development activity around Glenferrie Road and High Street, Armadale will provide a major boost to the existing catchment and support trade over the long-term.