This article is from the Australian Property Journal archive
A DOUBLE-storey freehold building in Melbourne's bayside shopping strip of Hampton St, Hampton has sold under the hammer by Fitzroys, on a sharp yield of 1.1%.
Fitzroys senior associate Mark Talbot sold the property at 411 Hampton St Hampton on behalf of the Kaufman family, who have held it for over 30 years.
Talbot said the auction generated an overwhelming level of interest, which far exceeded his expectations.
“Most of the interest came from local parties who were attracted to the property’s flexibility, allowing for value-add potential. The purchaser was a local investor who intends to both occupy and lease out the property.
“The auction saw bidding from four parties, however two principal bidders fiercely fought out the auction to the final sale price of $1.4 million, which represented an amazing 40% above the vendors’ reserve,” he added.
Talbot said the reserve price was more typical of properties he has sold in the prestigious shopping strip of Church St, Brighton, where the vacancy rate is close to zero.
“Many investors see Hampton as a more accessible alternative to Church St Brighton, which remains very tightly held. The result at 411 Hampton St is a clear indication of the strong demand for freehold and value-add opportunities throughout Melbourne.
“Combined with investors seeing potential in an uplift in values along Hampton St, the huge number of parties that showed interest in 411 Hampton St were willing to pay a premium,” he continued.
Situated on a land area of 164sqm approx, the property comprises a double-storey 184 sqm brick building with ground floor retail and a two-bedroom apartment on the first floor.
Zoned Commercial 1, the property was sold with the ground floor area vacant and the first floor let, returning $16,320 per annum.
This latest transaction reaffirms that investors demand for Melbourne retail property shows no signs of slowing, putting pressure on yields, which have fallen below 3%.
Last week CBRE sold 41 Florence St in Mentone for $6,200,500 on a yield of 2.98%. Earlier this month Teska Carson sold 559-569 Malvern Rd in Toorak for more than $12 million, on a sub 3% yield.
Other deals include Ray White’s sale of 75-88 Railway Parade in Glen Waverley for $4.5 million on 2.92% yield and Savills transacting 88 Kingsway in Glen Waverley for $3.61 million on a 1.88% yield.
Property Review
