Melbourne, 03 December 2014 –South Yarra is emerging as an up and coming investment hotspot, as buyers cast their gaze to city fringe locations amid supply shortages and yield contractions in the CBD.
CBRE Senior Manager, City Sales & Strata Commercial, Tom Tuxworth said a shortfall of stock in Melbourne’s CBD and tightening yields were forcing buyers to look to inner-city suburbs for investment options.
Highlighting the recent trend is the sale of a 55sqm retail shop at 499 Malvern Road in South Yarra to a local investor for $850,000.
Mr Tuxworth negotiated the sale in conjunction with fellow agents Rorey James and Nick Lower on behalf of Icon Constructions. The sale equated to a rate of $15,455 per square metre and a yield of 5.2%.
“This sale reflects the high level of confidence in the area for retail investments leased to food and beverage operators,” Mr Tuxworth said.
“The prominent ground floor corner location and high volume of foot and car traffic provides an ideal position for this retailer.”
The trio also recently negotiated the sale of a 64sqm retail shop at 159A Williams Road to an offshore investor for $780,000 on behalf of Icon Construction.
“This is further evidence of increased demand from local and offshore buyers for city fringe investment properties,” Mr Tuxworth explained.
Mr James said South Yarra was fast becoming a desirable location to invest.
“Renowned for its thriving café culture and bustling retail market, South Yarra is flying high on the radar of investors, with a number of local and offshore buyers jumping at the opportunity to purchase in the area,” Mr James said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website atwww.cbre.com.au.