Australian retail record smashed in Sydney’s Circular Quay

1 March 2022

The $5.7 million sale of lot 11, 1A Macquarie Street culminating in a rate per square metre of $132,558 has smashed the previous Australian retail record by circa $20,000 per sqm in a landmark deal.

The shop, which is securely leased to international tea giant “Coco”, offered a first-class waterfront location across the Opera Quays boulevard with a tenancy area of approximately 43sqm.

The property was marketed and sold by Colliers National Director of Asia Markets Joseph Lin and Senior Executive of Investment Services Angus Windred in conjunction with Plus Agency’s Peter Li.

“Amongst the synonymous global brand, the desirable world-famous harbour location generated an enormous amount of interest during the campaign with more than 150 enquiries coming from both private local and offshore Asian investors as well as potential longer term owner occupiers,” Mr Lin said.

“Lot 11, being only one of a few ‘wet shops’ across Opera Quays, provided the once in a lifetime opportunity to purchase a versatile super prime retail asset, with local confidence rising in the anticipation and return of international tourism,” Mr Windred said.

Lot 11 was marketed and sold alongside Lot 54 for a combined $9.76 million. Lot 54, an approximately 186sqm waterfront office suite, fetched $21,828 per square metre. Colliers and Plus Agency are now bringing to market Lot 10, the world famous Guylian Belgian Chocolate Café, which is set to go to auction later next month.

“Guylian Belgian Chocolate Café provides a valuable corner position with exclusive outdoor dining space offering one of the rarest opportunities within the Quays. We are anticipating this to be one of the hottest and most watched auctions of 2022,” Mr Li said.

Strong demand for office and retail strata property in the Sydney CBD saw Colliers transact over $115 million from 31 sales in 2021, largely spurred on by owner occupier activity, the return of both on and offshore Asian investors and low interest rates.

With a drive to return to the office throughout late 2021, businesses looking for a stable capital investment saw the Sydney CBD strata office and retail market as scarcely supplied and ready to bounce back following several lockdowns.

Colliers National Director of Asia Markets Joseph Lin said Asian capital accounted for $53.5 million of the $115 million and achieved a rate close to $20,000 per sqm in 2021, which is approximately 30 per cent higher than the average rate of $15,240 per sqm.