Strong demand for ground floor retail investments has underpinned the sale of two assets in Melbourne’s inner city fringe for more than $3 million.
CBRE’s Melbourne Strip Retail Investments team negotiated the sale of the two properties at 1/499 Malvern Road in South Yarra and 5/1101 Toorak Road in Camberwell, with both assets attracting strong buyer interest from both local and interstate groups.
The South Yarra property – a 55sqm strata shop tenanted by Czarina Fashion – was acquired by a local investor for $988,000. The sale reflected a building rate of almost $18,000 per square metre and yield of just under 5%.
Meanwhile, a mainland Chinese buyer secured the Camberwell property three weeks prior to its scheduled auction for $2.5 million - $300,000 higher than its reserve.
CBRE’s Rorey James commented on the sale: “Both buyers were attracted to the higher yields offered by ground floor investments opposed to standalone buildings – and as such, were prepare to pay a premium in order to secure them so early on in both campaigns.
“Buyers are far more willing to look at strata retail properties than in the past – a trend that can be largely attributed to the yields on offer as well as the lack of stock to choose from over the past eight months.”
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