125-127 Toorak Road, South Yarra
Melbourne’s prime shopping strip market has continued its strong run to close out 2025, with a Toorak Road, South Yarra property selling for $2.96 million.
Fitzroys’ Lewis Waddell, Ben Liu and David Bourke sold 125-127 Toorak Road, South Yarra on behalf of a local owner with the sale price reflecting a high land rate of more than $13,000 per sqm and a tight yield of 4.5%.
The offering comprised two adjoining freeholds totalling 210sqm of building area, respectively leased to V22 Dispensary and The Wellness Clinics.
The campaign generated more than 70 enquiries, with a local investor winning out.
“The purchaser liked the fact that there’s two tenancies, meaning less of a vacancy risk,” Waddell said.
He the location was also an attraction to buyers.
“There’s currently no vacancy in this central part of Toorak Road, South Yarra.
“It’s close to the high-density Forrest Hill precinct, the recently-completed Claremont Hotel mixed-use development and the upcoming overhaul of South Yarra Square, as well as South Yarra station, which together guarantee strong levels of passing foot traffic.”
Liu said Melbourne’s shopping strip investment market is finishing 2025 strong.
“Blue-chip locations such as Toorak Road, South Yarra are performing well and still achieving relatively tight sale yields when compared to other sections of the market.”
“This sale is another indication of the the strength of blue-chip strips with high growth prospects due to surrounding developments.
“Toorak Road, South Yarra is an excellent example of the renewal that’s currently being seen across Melbourne’s shopping strips.
“These developments are boosting the immediate residential, visitor and worker populations, boosting trade prospects, and security of rent income.”
According to Fitzroys’ latest edition of the Walk the Strip report, Toorak Road, South Yarra vacancies improved over the past year from 6.3% to 5.7%, well below the Melbourne-wide average.
Bourke said the location is highly accessible via trains at South Yarra station, the Route 58 tram along Toorak Road, and trams running along nearby Chapel Street.
Fitzroys has now sold circa $7 million of property along the length of Toorak Road recently. That includes the sale of 416 Toorak Road, Toorak for a bumper price of $2.7 million, on a land rate of $13,500 per sqm and sharp indicative yield of 2.5%, as well as the strata-titled 525 Toorak Road, Toorak for $1.070 million, on a very high building rate of around $15,000 per sqm.
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