News

Another Strong Retail Result Stitched Up in Boroondara

Posted on 02nd April 2019

849 Burke Road, Camberwell

Demand for retail assets throughout Boroondara has delivered yet another strong sales result, demonstrating investors’ ongoing appetite for well-located Melbourne shopping strip properties in healthy catchments.

In the most recent deal in Melbourne’s inner-east, Fitzroys agents Chris James and David Bourke sold the two-level building at 849 Burke Road, in the prime section of the popular retail precinct, for $1.675 million at a sharp 4% yield.

The two-level 185sqm building is on a 185sqm site and is home to the Camberwell Sewing Centre, which occupies both floors on a five-year deal running until 2020 with a further five-year term.

It is positioned opposite the Burke Road walkway entrance to Camberwell train station, as well as Woolworths, Target, Optus, and Bonds.

James said the property sold to a Sydney-based investor after more than 100 enquiries were received for the property from across the country.

“This campaign continued a strong run of retail property enquiry and sales results across Boroondara, which reflects confidence in the area’s revitalisation, spurred by a strong residential development pipeline.

“These developments have underpinned enquiry from investors, owner occupiers and tenants alike through the inner-east, providing growth in the immediate catchment and boosting trade in the area.”

Among these are plans for a development next door that will retain the frontage of the historic State Savings Bank building and take in the adjacent Sofia restaurant site, and introduce 43 apartments, a restaurant, café and wine bar to the immediate vicinity.

Throughout the inner east, Fitzroys has recently sold the Hawthorn home of Sisko Chocolates to a local investor at a sharp 3.5% yield, for $1,357,500, following the sale of a shop and dwelling at 265 Camberwell Road, Camberwell for $1.425 million, at a tight 3% yield after more than 100 enquiries.

Other recent Fitzroys sales include an Auburn Village corner site in Hawthorn East to a local investor for $2.525 million, at a 4% yield after more than 80 enquiries, and the landmark 1885 building now home to Meat & Wine Co. on the corner of Burke Road and Riversdale Road overlooking Camberwell Junction for $4.75 million, at a 4.05% yield.

Last year, the agency also sold 171-173 High Street building of 332sqm in Kew, home to Flight Centre and Onyx homewares for $4.175 million, at a 3.9% yield; as well as the Cam’s Corner café at 387 Camberwell Road at a 4.1% yield.