Melbourne’s prime shopping strip market has passed its first auction test for 2022, with a unique offering in the absolute prime of Burke Road, Camberwell selling under the hammer for $6.66 million.
Fitzroys’ Chris James and David Bourke sold 566 Burke Road on behalf of private long-term owners. The commanding 646sqm two-level building is set to be vacated by NAB at the end of June and will be repositioned by the purchaser, a local investor.
“This was a really pleasing result to start the year for Melbourne’s prime shopping strip market,” Bourke said.
“The market responded accordingly to one of the most versatile opportunities offered in the prime of Burke Road, Camberwell in years. We had interest from investors, value-add players and owner-occupiers, from across the country and offshore.”
The campaign generated around 100 enquiries and multiple bidders competed for the asset on auction day in front of a large crowd.
“Investors were keen to secure a freehold in one of Melbourne’s best-performing strips throughout the COVID period, while owner-occupiers saw an incredible opportunity to secure an ultra-prime flagship Melbourne shopping strip premises,” Bourke said.
“Prime Melbourne shopping strips assets continue to be regarded as compelling opportunities. There’s clearly pent-up demand and large volumes of capital waiting to be deployed in the market after low levels of quality stock came to the market over the past two years.”
The building comprises a 474sqm ground floor showroom with high atrium ceiling, and a first-floor mezzanine area with partitioned and open-plan offices and amenities. It provides walk-through accommodation to Market Place, offering further activation to the major car park and Camberwell Central, Woolworths, Kmart, Officeworks, and Aldi.
It is on a large 560sqm landholding zoned Commercial 1, with a commanding frontage of nearly 13m to the prime of Burke Road and Camberwell Junction precinct, just metres from the Junction itself and with huge exposure to passing traffic. It also has a 14.2m frontage to Market Place.
According to Fitzroys’ latest Walk the Strip report, Burke Road demonstrated its resilience with vacancies coming down from 11.3% to 7.3% last year marking the biggest reduction in vacancies across Melbourne’s iconic shopping strips.
“Burke Road has proven its credentials throughout the past two years, maintaining its quality tenancy mix of local and national traders, supermarkets, cafés and restaurants attracting large volumes of visitors and custom from its large, established residential and commercial catchment,” James said.
Fitzroys has now sold $31.4 million worth of prime Burke Road, Camberwell properties in just over 12 months, at an average investment yield of 3.8%, and with the sales combined marking the changeover of more than 200 years of ownership.
James added the attraction of Burke Road, Camberwell had been been further enhanced by new medium and high-density residential and commercial developments adding to the area, such as Camberwell Village, Hawthorn Park, Aerial, The Well Residences, Elmington, Solstice and Ebony.
“Burke Road serves one of Melbourne’s most established and affluent catchments, and this this further growth has bolstered the immediate population as well as spending on retail, food and beverage, and services along the strip,” he said.