Weekly Wrap

Fitzroys Weekly Wrap - 13th April 2018

Posted on 13th April 2018


Retail sale, 361 St Georges Road and 202 Barkly Street, Fitzroy North
Zoned Commercial 1, the L-shaped 482sqm site sold for $2,150,000 and encompassed a retail building fronting St Georges Road and a three bedroom period-style home fronting Barkly Street.

Retail sale, 4/216 Dorset Road, Boronia
The vacant, open-plan 174sqm shop sold at auction for $590,000, at a floor rate of $3,390.80/sqm.

Retail lease, 40 Market Street, Melbourne
Simpsons Burgers is opening a second CBD site after leading the 100sqm space at $80,000pa gross on five-year deal with options, from landlord MTAA Superannuation.

Retail lease, 1297-1299 Sydney Road, Fawkner
Donut giant Krispy Kreme will pay $115,000pa on a 10-year deal for the 1,823sqm site, which will become its second drive-through store with a purpose-built 250sqm building, open-plan seating area, office space and customer parking.
Office sale, 5/38 Hall Street, Moonee Ponds
The 70sqm strata office sold at a receiver’s auction for $830,000 at a sharp 2.9% yield, leased to financial group MLC on a new 2+2-year deal returning $24,000pa.

Office lease, Ground Floor, 126 Trenerry Crescent, Abbotsford
A fourth film production company in 12 months has leased at this propety taking the 1,060sqm office space. It has has proved popular among groups looking for short-term deals as they are typically filming nearby. Seaside Productions will pay $120,000pa plus GST for the fully-fitted space that includes furniture and phones, offering a “plug-and-play”-type set-up, while the large on-site car park is suitable trailers and equipment storage. Most of the building is let to other production companies.
Land/development sale, 23 Little Oxford Street, Collingwood
A local developer paid $1.55 million for the Commercial 1-zoned 142sqm site, which has a permit for a six-level, 518sqm development. Sold at a land rate of $10,915/sqm.
Industrial sale, 33 Industrial Drive, Sunshine West
A local owner occupier paid $2.2 million for the warehouse facility of 1,207sqm, which has first-floor office space and is on a 2,022sqm site.

Talking points

Monumental week for major Melbourne transport projects: Melbourne’s widely-discussed Airport rail link is a $5 billion step closer to being realised, after Prime Minister Malcolm Turnbull announced federal funding would be included as a key component of this year’s budget.

The Victorian government last year stated it was looking to build the project within decade. Current estimates have the project costing around $10 billion.

The exact route it would take is still under consideration. Currently, four proposed paths include a Craigieburn link, which would stretch east immediately from the Airport and then head south towards the CBD from Broadmeadows; while three alternative links travel south from the Airport and respectively pass through Sunshine and Albion; Highpoint and Flemington, and Highpoint also before going through Victoria University and Footscray, on their way to the CBD.

A 50-50 funding arrangement between the federal and state governments has reportedly been suggested by the Prime Minister, as well as the federal government retaining 50% ownership in the rail line. Private sector investment has already been encouraged.

Meanwhile, Transport for Victoria is considering a proposal for a new tram route that would run from Caulfield, through to Monash University’s Clayton Campus via Chadstone Shopping Centre, and on to Rowville.

The 18-kilometre route comprises two stages, taking in the leg between Caulfield railway station – next to Monash University’s Caulfield campus – to the Clayton campus. It would run along the central median of Dandenong Road and Princes Highway, and then Wellington Road and Stud Road.

The Andrews government will put forward $3 million in the next budget for planning and design. It would be the first major key addition to Melbourne’s tram network since three kilometres was added to Route 75 to Vermont South in 2005.

Works are currently underway on the $11 billion Melbourne Metro Rail Project, that will bring five new underground stations through central Melbourne, including in the CBD, and connecting the Pakenham and Cranbourne lines from the south-east with the Sunbury line from the west.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys.