Adjoining shops in Brighton with development potential sold

Adjoining retail shops in Brighton have sold for the first time in 30 years for a combined $1.75 million.

The sale of the 342 square metre site over the two titles at 617 & 619 Hampton Street stores reflected a yield of 1.9%, and land rate of $5,116 per square metre.

617 Hampton Street was offered with vacant possession while 619 Hampton Street is leased to longstanding tenant Hampton St Organic Produce, returning $33,581 per annum plus outgoings and GST.

Fitzroys agents Mark Talbot and Tom Fisher said the properties were Zoned Commercial 1 and are also subject to a DD012 Overlay with a preferred development height of 11 metres.

“The property attracted strong interest interest from investors, owner occupiers and developers looking for a rare chance to acquire a versatile and underutilised bayside freehold, leading to competition between multiple bidders at auction,” Talbot said.

Talbot said despite tightened lending conditions, vacant retail properties have been trading strongly throughout Melbourne.

“Cashed-up investors and owner occupiers will continue to be active in this space, as the low interest rate environment is expected to remain for some time,” he said.

He noted the recent sale of the former premises of the Brighton favourite Wild Holly Cakes on nearby Bay Street as an example.

“Demand from investors and owner occupiers to gain a presence in the blue-ribbon suburb has spilled over from the dominant Church Street retail strip,” Talbot said.

“The superb fundamentals of an affluent and growing immediate catchment have made a notable impact on one of Melbourne’s most highly regarded suburbs.”