Weekly Wrap

Fitzroys Weekly Wrap - 27th November 2020

Posted on 27th November 2020

50 Market Street, Melbourne
The Alcaston Gallery bought the 90sqm strata office for $850,000 as a new base for its staff. It is vacating its current gallery space at 11 Brunswick Street in the new year, and will open a new gallery in the following months. A developer bought the 11 Brunswick Street gallery and residence building, on a Commercial 1-zoned site, 12 months ago.

627 Chapel Street, South Yarra
Oreana leased the 1,179sqm whole-floor office on level 16 of Goldfield Group’s new office tower at $600/sqm plus outgoings and GST.

183-185 High Street, Prahran
Victorian Greens MP for Prahran, Sam Hibbins leased the 160sqm ground floor space within the old Red Tulip building for 7 years plus options, at $85,000pa gross.

39-49 Myrtle Street, Myrtleford
The Dahlsens Mitre 10 hardware store building sold for $3.35 million at an 8.5% yield. The 4,089sqm purpose-built facility is on a 4,560sqm site and has a 15-year lease running to 2025 with options, currently returning $313,089pa net.

19-21 Urban Street, Braeside
Specialist packaging manufacturer Martin O’Brien Formes Pty Ltd signed a 5+5-year lease over the 2,540sqm office and warehouse at $150,000pa plus GST.

690 Glenferrie Road, Hawthorn
A private investor bought the 2-level building, home to Picasso’s Café, for $2.74 million at a 3.9% yield and land rate of $16,700/sqm.

466-468 Glen Huntly Road, Elsternwick
A local investor/developer paid $2.33 million for the 198sqm corner site. Zoned Commercial 1, it is leased until the end of June 2021 returning $60,000pa.

278 Waverley Road, Malvern East
A local investor bought the 190sqm building, home to Clancy’s Bakehouse, for $1.5 million at a 3.8% yield. The bakery has a new 7-year lease plus options returning $57,329pa plus outgoings and GST. It is on a dual-fronted 285sqm site zoned Commercial 1.

154 Johnston Street, Fitzroy
Floristry Dragonfly Flowers & Designs leased the 2-level 240sqm standalone building, on a 205sqm corner site, on a 5+5+5-year term at $75,000pa plus outgoings and GST.

224 Whitehorse Road, Balwyn
A Korean BBQ restaurant leased the 2-level 170sqm building, fitted with a commercial kitchen, for 5 years at $50,000pa.

826 Doncaster Road, Doncaster
A medical professional bought the 150sqm owner-occupied podiatrist clinic premises for $1.55 million.


Another Victoria Parade Corner Sale
A Liberty petrol station and Ultra Tune car service centre property has sold for more than $20 million to a local buyer with offshore interests, in the latest corner development site sale on Victoria Parade.

The 1,700 sqm site at 151-159 Victoria Parade, Fitzroy was owned by Angelo Property Group’s Ange Angelo and Domenic Pulitano.

Located between Brunswick and Smith Streets, the site is close to Australian Catholic University, St Vincent’s Hospital and Epworth Freemasons.

A few blocks over, Pellicano Group last year bought 207 Victoria Parade, on the corner of Smith Street and opposite McDonald’s. Earlier this year it lodged plans for a $22 million, 13-storey office tower with ground floor retail for the site.

Also early in 2020, Singapore-listed ARA Asset Management and Canada’s QuadReal Property bought the 200 Victoria Parade site, on the corner of Lansdowne Street, for $330 million in a fund-through deal. That site is earmarked for an 11-storey, 26,000sqm commercial development.

Stamp Duty Waiver for Build-to-Rent
The Victorian Government’s state budget this week included the halving of land tax for build-to-rent developments from 2022, and to continue until 2040.

More than half of the country’s development pipeline in the budding sector is in Victoria, and includes Mirvac’s projects on the Munro site next to Queen Victoria Market, at the former Melbourne Convention Centre site on Spencer Street in the CBD, and its 527-unit project on a 1ha site in Brunswick in partnership with Milieu.

Other major developments in the sector include part of Lendlease’s Melbourne Quarter precinct in the city, Sentinel’s West Melbourne project, and components Salta’s developments next to Victoria Gardens in Richmond and a tower in Docklands.

Also within the state budget was the previously-announced $5.3 billion package for social housing, and the fast-tracking of a 50% stamp duty concession for regional commercial and industrial properties that was originally scheduled for July 2023.

Stamp duty revenue is expected to be worth $4.6 billion this financial year, and grow to $7 billion in 2023/24.

The budget also included stamp duty waiver of as much as 50% on residential homes worth up to $1 million for the remainder of the current financial year. New builds are eligible for the full discount, and existing homes for up to 25%.

A further $52 million in the budget was put towards implementing planning reforms recommended by the Commissioner for Better Regulation, and $59 million for targeted planning system changes.

10 Strata Suites Sell
Ten strata office suites within the Lifestyle Working Collins Street building in Docklands have been sold.

A Brisbane-based business expanding into Melbourne bought 6 adjoining offices, suites 1.16-1.21, of a combined 380sqm for $2.6 million.

Neighbouring suites 2.24-2.26 were bought by a local investor for $1.128 million, while an architect moving from South Yarra bought the 80sqm suite 2.16 for $610,000.

Located at 838 Collins Street, the 4-level building has 137 individual commercial suites.


Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys. Terms/Privacy © Copyright 2020 Fitzroys.