$17M in Sales Along Key Melbourne Shopping Strips as Investors and Owner-Occupiers Alike Pursue Assets

Melbourne Shopping Strips – July

Melbourne’s shopping strip market is showing signs of strength entering the new financial year, with FY25 capped off by circa-$17 million in sales along key strips amid heavy interest from investors and owner-occupiers alike.

Among Fitzroys’ sales in two weeks in key strips are:

• 442 Clarendon Street, South Melbourne – $1.235 million
• 279 Coventry Street, South Melbourne – $2.24 million
• 509 Chapel Street, South Yarra – $1.565 million
• 207 Glenferrie Road, Malvern – $1.815 million
• 662 Burke Road, Camberwell – $10,000 per sqm
• 54 Puckle Street, Moonee Ponds – $2.010 million
• 90-94 Lower Plenty Road, Rosanna – $3.475 million
• 387 Bay Street, Brighton – $1.626 million

“We’re seeing really strong buyer demand for well-located Melbourne shopping strip assets entering the new financial year. Prime Melbourne strip retail assets continue to offer sound investment credentials, particularly at a time of residential and share market volatility,” said Fitzroys Director David Bourke.

“Well-leased properties continue to be in demand and yields are beginning to tighten. The gradual reduction in interest rates is assisting and sentiment is also improving amongst investors with the federal election now behind us.”

The property at 207 Glenferrie Road, occupied by an MS Plus Community Op Shop, sold on a sharp 4% yield through Lewis Waddell and Ben Liu.

Bourke said Melburnians are looking for places where they can live, work and play and shopping strips with strong commercial and residential markets, and high accessibility via public transport and car are attracting broad interest.

“We saw expectations exceeded in the sale of 54 Puckle Street, which is surrounded by the generational Moonee Ponds development boom. There are some 2,000 apartments in the surrounds, to go with newly completed major residential developments such as Penny Lane, while the $2 billion overhaul of Moonee Valley Racecourse is underway and will ultimately add thousands more residents to the immediate catchment.”

Moonee Ponds is further supported by a growing commercial market and workforce, which includes the Australian Taxation Office and Honda head office within walking distance from the property, while the suburb boasts excellent public transport linkages by train, tram and bus, and excellent connectivity to major road arterials, and a location only seven kilometres north-west of Melbourne’s CBD.

Bourke and Ervin Niyaz were the agents.

Through Waddell and Chris James, an investor also acquired 509 Chapel Street, South Yarra, which is occupied by longstanding tenant Kisskill. The property is in the prime of what is arguably Australia’s most famous shopping strip, opposite the $2.75 billion Jam Factory development that will transform the strip further and boost the residential, worker and visitor population, sharply enhancing the strip’s long-term prospects.

South Yarra has been witnessing intensive commercial and residential development, namely in the high-density Forrest Hill precinct which has seen delivery of the new Goldfields House office tower and numerous apartment buildings.

An investor acquired the multi-tenanted property at 387 Bay Street, which is opposite a high performing Coles supermarket and apartment development and services what is one of Melbourne’s most affluent and prized catchments.

Mark Talbot and Tom Fisher sold the property.

“We’re also seeing owner-occupiers play a greater part in the market, and we expect that will continue as interest rates fall further,” Bourke said.

Owner-occupiers acquired the properties at 442 Clarendon Street, through Fisher and Chris Kombi, and 662 Burke Road, through James, Liu and Bourke, with the latter to become home to a new hospitality venture.

“The strength of these sales shows owner-occupiers are serious participants in Melbourne’s shopping strip market, creating extra competitive tension in sales campaigns,” Bourke said.

“Vacant properties and properties with short-term lease profiles are transacting and we’re seeing positive outcomes for vendors and buyers,” Bourke said.