Weekly Wrap

Fitzroys Weekly Wrap - 27th April 2018

Posted on 27th April 2018


Retail Sale: 541B Whitehorse Road, Mitcham
The 87sqm Sandton Hair Gallery strata property sold at auction for $770,000, at a 4.2% yield with a 3+3-year lease to the longstanding tenant.

Retail Sale: 1628-1630 High Street, Glen Iris
An investor purchased the 169sqm site, which has a 110sqm vacant shop used an office, for $1.03 million at auction.

Retail Lease: Shop 7, The Colonnade, 542 Chapel Street, South Yarra
High-end European-style menswear retailer Ciano & Rozza leased the 96sqm space in the prime section of Chapel Street at around $100,000pa. The deal was signed almost immediately after the previous tenant had completed their de-fit.

Retail Lease: 349-351 Flinders Lane, Melbourne
The premises of Bluestone Bar & Restaurant has been leased to a new Japanese fusion venture for $216,500pa gross. They will be refurbishing the 690sqm ground floor and basement area of the heritage-listed building.

Retail Lease: Shop 66, Hampton Park Shopping Square, Hallam Road, Hampton Park
TAB has leased the space on a seven-year deal at $99,450pa from Greenwood Capital.

Office Sale: 2 Collins Street, Melbourne
An investor snapped up the 111sqm corner suite, leased to Collins Street Dental on a 5+5+5-year deal, for $1.13 million at a 3.62% yield.

Land/Development Sale: 26 & 28 Bordeaux Street, Doncaster
A Chinese developer paid $3.775 million for the vacant 1,337sqm site, which is zoned Residential 2 and has development approval for a townhouse project of 10 dwellings.

Land/Development Sale: 216 Burwood Highway, Burwood
The 600sqm site directly opposite Deakin University has a block of 14 student accommodation apartments and sold to a Chinese investor for $3.105 million under the hammer, at a 4.2% yield.

Industrial Sale: 97-107 Canterbury Road, Kilsyth
The 1.05ha site has a brand new showroom and warehouse building of 5,150sqm and sold for $5.1 million, with a lease to EzyTrail Camper Trailers for the next five years.

Industrial Lease: 99 Cook Street, Port Melbourne
Nu Group Rail Solutions signed a 3+3-year deal at $200,000pa net for the 1,230sqm high-clearance warehouse and open-plan office facility.

Talking points

Melbourne leads nation in population growth: Melbourne’s booming population is the fastest-growing in Australia, according to the latest data from the Australian Bureau of Statistics. Over the the 12 months the end of June 2017, greater Melbourne recorded growth of 2.7% and 125,424 people in total, and is now home to more than 4.85 million people, having cracked the 4 million mark only in 2006.

Sydney and Brisbane were second for the rate of population growth of the other capitals, with 2.0% each.

The rest of Victoria saw growth of 1.3%, for a statewide growth rate of 2.3% to more than 6.323 million, the highest in the country and well above the national rate of 1.6%.

The Mickleham-Yuroke area in Melbourne’s north-western suburbs returned the fastest growth rate of any metropolitan region in the country at 35.3%, and Cranbourne East the highest growth figure of 7,300 people (at 27.4%).

Melbourne City grew by 4,631 people at 11.2%, the second-highest figure in the metropolitan region, followed by the western suburbs of Tarneit and Truganina, and then Mernfa, Melton South, Wollert, Craigieburn – West and Beaconsfield-Officer.

Rockbank-Mount Cottrell was second in growth rate terms with 28.2%. Next was Cranbourne East, and then Wollert with 20.8%. Rounding out the top 10 was Docklands, Mernda, Beaconsfield-Officer, Point Cook – East, Craigieburn – West, and Truganina.

Throughout the rest of Victoria, the highest growth figures were seen in Geelong’s Grovedale (1,801 people), and then Ocean Grove-Barwon Heads and Torquay, while Grovedale also returned the fastest growth rate (7.6%), followed by Alfredton in Ballarat, and White Hills-Ascot in Bendigo.

Jam Factory gets green light for $450 million makeover: The iconic Jam Factory retail and cinema complex in the heart of Chapel Street, South Yarra will make way for a 100,000sqm mixed-use precinct. It will include four office towers that will reach as high as 15 storeys, atop a three-level podium including retail and hospitality offerings and cinemas, with an end value of $1.25 billion.

Stonnington Council approved owner Newmark Capital’s plans this week, which will require $450 million for the overhaul.

Laneways that once existed through the site will be recreated as part of the proposal drawn up by Bates Smart and Leonard Design.
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.