This article is from the Australian Property Journal archive
A RETAIL investment property in Melbourne’s south eastern suburb of Carnegie has sold for $3.35 million on a tight yield of 2.53%, setting is a new benchmark.
Fitzroys agents Chris Kombi and Chris James sold the property at 66 Koornang Rd Carnegie and sale it was record for a single fronted shop along Koornang Rd.
They added that the low yield of 2.53% was also a new benchmark for the popular strip.
The sale price reflects a land rate of $15,800 per sqm. The property comprises a land area of 212sqm and a building area of 150sqm, and was sold with a 7 x 5 x 5 x 5-year lease in place to a Vietnamese restaurant trading as Pho 66 and returning $84,872 per annum plus outgoings and GST.
Kombi said the property attracted more than 150 buyer enquiries and had seven bidders competing fiercely at auction.
He said the strong interest and subsequent incredible result reflected the market’s current appetite for well- located investment grade retail property, particularly in tightly held areas with historical low vacancy rates.
“The property’s future value is underpinned by a rapidly growing residential catchment with a major transformation currently underway within the Koornang Road Activity Centre with a number of high rise residential developments completed nearby and approximately 15 others in various stages of planning and development.” Kombi said.
Australian Property Journal
