The 233sqm site is within a valuable Activity Centre Zone and has 10 metres of frontage. It comprises a fully-leased 320sqm building with two ground-floor shops and two first-floor offices, with four on-site car parks at the rear. The property sold on a tight 3.7% return on the net passing rental.

Kombi said multiple bidders, including landbankers and investors, competed for the property.

“We had investors looking to get into what is a fast up-and-coming retail and lifestyle precinct, with both excellent trading prospects and future rental growth potential due to the ongoing completion of new buildings in the surrounds,” Kombi said.

This was also a chance to invest in what is becoming the lifestyle hub of Melbourne’s north-west with a proven track record for capital growth.

“We’re seeing landbankers securing well-located commercial properties with steady cash flows from quality tenants, happy to assess their plans and ride out the supply, material and labour constraints being faced in the development sector.”

Niyaz said, “Despite the higher interest rates we’re still seeing a good depth of enquiry in campaigns, multiple bidders at auctions and strong results.”

Hall Street is part of the Moonee Ponds retail and lifestyle precinct and is anchored by Puckle Street - which according to Fitzroys’ new Walk the Strip report, saw vacancies came down from 4.6% to 3.2% in 2022, among the lowest of Melbourne’s iconic shopping strips - and includes a Woolworths supermarket, Moonee Ponds Central, and a number of local and national eateries and service retailers.

Following the completion of multiple residential and commercial projects in recent years, the precinct will be further supported by ongoing developments such as Penny Lane, which will deliver apartments, retail, hospitality and a Palace Cinema, and the future $2 billion commercial and residential overhaul of the Moonee Valley Racecourse close by that will introduce new residential and commercial buildings.