342 Queens Parade, Fitzroy North
A local has secured an inner north Melbourne village retail investment at a fiercely contested auction as well-located commercial property continues to trade well.
The 120sqm shop at 342 Queens Parade was sold under the hammer by Fitzroys agents Lewis Waddell and Chris Kombi on behalf of an estate.
Spirited competition between three bidders led to a sale price of $945,000 that reflected a sharp yield of 4% and high building rate of $8,000 per sqm.
The property has a recently renewed 3+3-year lease to fashion brand Toorallie Australia.
“The buyer is a local who has a strong affiliation with the area – they have lived in the area for a long time and have their own business nearby, and have experienced its evolution first-hand,” Waddell said.
“They were attracted to the property given the underlying residential values in the area.”
Fitzroy North’s median house price has risen 14.2% in the past 12 months to more than $1.695 million1, according to realestate.com.au.
Waddell said more investors will be drawn to well leased, well located commercial property over residential property in the near future following the federal government’s tax changes.
“Despite the budget announcements, commercial property is still trading well,” he said.
“This sale reinforces that commercial property will be less affected by the proposed negative gearing and capital gains tax changes, and will be a more attractive investment vehicle than residential property as people look to higher returns over capital growth.”
1 https://www.realestate.com.au/vic/fitzroy-north-3068/
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