Melbourne’s prime shopping strip investment market has passed its first tests of the new financial year with flying colours, with a double-tenanted Burke Road, Camberwell shop selling for more than $5.08 million - nearly $1 million above the reserve - and the strong $4.4 million sale of a Commonwealth Bank branch that suggests renowned Acland Street, St Kilda is on the rebound.

Fitzroys’ Chris James and Ben Liu sold 626 Burke Road, Camberwell, anchored by national footwear brand Frankie4, at auction for $5.081 million, with the sale price reflecting a sharp 3.6% yield. The property was purchased by a local investor after five separate bidders competed at the auction.

The dual-fronted 261sqm freehold features a new six- and five-year leases to established tenants, with Frankie4 occupying the Burke Road tenancy, and Lucky Well Tattslotto at the rear Market Place tenancy.

The property is on a premium landholding of 261sqm, surrounded by national tenants including Mecca Cosmetics, Telstra, Sheridan and all major banks. The frontage to Market Place provides additional activation to a major car park, Camberwell Fresh Food Market and a bustling hospitality precinct with Laurent, M.O.B. Café, Woodfrog Bakery and more.

“Burke Road’s retail occupancy rates have soared in recent times with a number of retailers entering the precinct including the new Country Road flagship store,” James said.

“The area has a growing commercial office population and Burke Road has been the beneficiary of medium and high-density development in recent years, which has boosted the established, affluent catchment and underpinned trade. Council activity is promoting further developments on and around Burke Road and Camberwell Junction,” he said. Council plans would allow for higher-density residential development around Camberwell Junction that would deliver 1,500 new apartments housing 3,500 new residents to 2051.

The Acland Street property, at 133 Acland Street, was sold through Fitzroys Mark Talbot and David Bourke on behalf of private vendors who have owned the property for 26 years.

Four bidders competed at the auction, pushing the sale price $300,000 beyond the reserve before it sold for $4.4 million to a local private investor, on a 4.9% yield.

CBA has occupied the property for over 50 years and has 3.5 years remaining on the lease with further options. The distinctive and high-profile 233sqm building recently underwent a major refurbishment.

It is on a 460sqm Commercial 1-zoned site within a world-renowned precinct home to popular hospitality, nightlife and entertainment venues including Stokehouse, Donovans, The Palais, The Espy, Luna Park, Village Belle, The Vineyard, Flour Child, Abbey Road, Lona Bar and more.

“This was a generational opportunity to buy an irreplaceable freehold investment in the prime of Acland Street, St Kilda. There’s been a lot of commentary around Acland Street but the result clearly shows the market is recognising that it’s starting to turn the corner,” Talbot said.

According to Fitzroys’ Walk the Strip report series, occupancy along Acland Street is returning to pre-pandemic levels.

Bourke noted CBA recently undertook a major renovation of the property and committed to a long-term lease.

“This show of confidence in the location from a blue-chip tenant reflects the anticipated uplift in trade along Acland Street, in line with the renewal and activation of the surrounds.”