
17 Toorak Road, SouthYarra
Another strong sale result on Toorak Road, South Yarra has been achieved by Fitzroys as investors continue to pursue quality opportunities along Melbourne’s shopping strips.
In the latest deal, Fitzroys’ Lewis Waddell and Ben Liu sold 80 Toorak Road following a successful auction campaign for S2 million, on a sharp 3.8% net yield.
The 120sqm building was offered with a brand-new five-year lease to Toorak Road mainstay Avoca Hill Bookstore.
It is on a 162sqm site in a prime South Yarra location surrounded by local and national tenants including Australia Post, Mecca, Kidstuff, Gum Tree Good Food, OPSM, Melbourne institution France Soir, Bar Carolina, Neds Bake and many more.
“This is one of the sharpest yields achieved this year to date for a prime Melbourne shopping strip investment,” Waddell said.
“There are buyers out there who are willing to purchase on tighter yields for properties in prime positions within blue-chip strips, as the risk of vacancy is lower and they can rely on a secure income. This purchaser was looking for a long-term play and was also encouraged by the property’s position within a shopping strip that is experiencing a period of generational renewal. Developments on and around the strips are underpinning future trade and rent prospects.
“Vacancies have already been measured at a long-term low along the shopping strips as Melburnians spend more time than ever at their local villages.”
According to Fitzroys’ latest Walk the Strip report, Toorak Road, South Yarra vacancies have nearly halved since 2021, from 10.1% down to 5.6% in 2023.
Fitzroys has now sold more than S20 million worth of prime shopping strip retail assets on Toorak Road recently. Among those transactions was the S5.15 million sale of 91-93 Toorak Road, South Yarra, home to La Porchetta and an optometrist, on a very sharp passing net yield of 1.8%, and the S2.16 million sale of 17 Toorak Road, occupied by La Parisienne Café and Charcuterie, on a 3.7% yield.
Liu said 80 Toorak Road is located at the entrance to Avoca Street and the Domain Hill residential enclave, is well-positioned to South Yarra train station, and surrounded by many key developments that will continue to make South Yarra more dynamic. These include the ongoing development of the nearby Forrest Hill precinct, taking in Greystar’s new S500 million build-to-rent project, as well as Oreana’s S250 million redevelopment of South Yarra Square, V-Leader’s S90 million Hotel Claremont revamp, and Gurner and Qualitas’ S2.75 billion overhaul of the Jam Factory.
Liu noted that Asian heritage and Asian capital-backed buyers were particularly prominent in the enquiry and bidding for 80 Toorak Road.
“Asian heritage buyers are certainly among the most active buyer groups in the current market,” he said.
“They continue to be particularly keen on investments throughout Stonnington and Melbourne’s shopping strips.
“Fitzroys has been tracking and servicing these buyers and they have been active in campaigns and participating in our auctions, with the outcome being added competition and strong results for our clients.”