Strong buyer interest drives result 17% above reserve as Colliers secures premium outcome for blue-chip asset in Melbourne’s inner-east.
A tightly held retail strip, known as Balwyn North Village Arcade, in Melbourne’s prestigious inner-east has sold under the hammer for $6.85 million, a remarkable $1.01 million above reserve, following a highly competitive auction led by Colliers.
Located at 70 Doncaster Road, Balwyn North, the 1,365sqm* free-standing retail building, drew strong interest from local investors, developers, and value-add buyers, with four active parties placing over 30 bids in a spirited contest. A result reflecting the enduring appeal of blue-chip retail assets in Melbourne’s most affluent suburban precincts.
Alex Browne, Colliers’ Associate Director | Investment Services, said, “The campaign drew a large crowd on auction day, reflecting the significance of the asset within the local community. There’s a clear appetite for premium retail and office assets across Melbourne’s established inner-east precincts. The result, 17% above reserve, translates to a sharp yield of 5.49%, highlighting the strength of the market.”
Tim McIntosh, Colliers’ National Director |Retail Middle Markets, said, “The sale underscores the strength of private capital targeting strategic retail investments in Melbourne’s inner suburbs. Strong buyer demand reinforces the depth of private capital for strategic inner Melbourne retail investments on significant land parcels.”
The property’s tenancy profile is exceptionally strong, with several long-standing tenants, some in place for over 30 years, providing secure income and future rental growth potential. Its location within Balwyn North Village, a precinct that has maintained exceptionally low vacancy levels for decades, added to its investment appeal.
Balwyn North Village Arcade boasts a prime location in one of Melbourne’s most desirable suburbs, renowned for its leafy streets, elite schools, and vibrant village atmosphere. With a median house price of approximately $2.8 million, Balwyn North continues to attract families and professionals seeking a premium lifestyle, further enhancing the long-term fundamentals of the area.
Lucas Soccio, Colliers’ Executive| Investment Services, said, “The sale of 70 Doncaster Road marks a clear signal of the robust demand for high-quality retail assets in Melbourne’s most sought after locations. With demand consistently outpacing supply, tightly-held community hubs like Balwyn North Village will remain among the most coveted investment opportunities in the market.”
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