Fitzroys say blooming prospects for roses among Thornbury

Investors and owner occupiers continue to seek retail properties in Melbourne’s inner north in big numbers, with another High Street shop and dwelling in Thornbury changing hands under the hammer.

Fitzroys agents Chris Kombi, Ervin Niyaz and Terence Yeh sold 917 High Street for $1.255 million, on behalf of a family that had held the asset for more than 50 years.

An owner occupier purchased the two-storey building of 240sqm, which has a ground floor shop with a short-term lease and first-floor, two-bedroom apartment, on a 224sqm site.

Kombi said the campaign, which attracted more than 120 enquiries, and fierce competition between five bidders at the auction reflected the ongoing demand for assets in the area.

“The building was offered in its original condition, presenting prospective buyers the chance to make their mark on one of inner Melbourne’s fastest-growing retail and lifestyle precincts, or refurbish and capitalise on rental uplifts.”

Shop and dwelling properties on High Street have been trading at healthy numbers. Kombi, Niyaz and Yeh recently sold the 785 High Street corner site for $1.805 million at a 2.4% yield at auction, following a campaign that saw 150 enquiries; as well as 740 High Street for $1.385 million at a 2.9% yield, which netted more than 100 enquiries.

Yeh said ongoing gentrification of Melbourne’s inner north had brought multiple medium and high-density developments, bringing excellent rental growth potential as the immediate residential catchment grows, as well as creating heightened demand for retail services.

“Growth of the immediate catchment has also accentuated the extended trading cycles of these centres, adding to their vibrancy, and Thornbury has enhanced its reputation as a trendy and popular destination for eateries and bars.”