Latest news with #Fitzroys
News.com.au
02-08-2025
- Business
- News.com.au
Melbourne's smallest shops reveal shocking price per metre rates
Forget Toorak and the towers at the Paris end of Collins St, Melbourne's priciest piece of real estate is probably a 2sq m cupboard in a CBD laneway worth more than $190,000 a metre. It's more than ten times as valuable on a square metre rate than the more than $100m Coonac mansion that smashed the city's house price record earlier this year — and business owners are even taking on the cost of filling in disused elevator shafts to get something similar. But they're facing mixed fortunes with one of the city's most expensive properties sitting empty, despite the 14sq m shopfront at 97 Swanston St being bought at an incredible $184,000 a metre in 2012. Meanwhile an 8sq m kiosk in Northcote plaza has hit the market with a $450,000 price tag that would make it among the most expensive pieces of suburban real estate ever sold in the city. Fitzroys division director James Lockwood's firm handled the sale of what is thought to be the city's priciest property, a 2sq m premises at Shop 3, Causeway House, which set an incredible $190,000 a metre price benchmark in 2013. While such sales have tapered off, Mr Lockwood noted demand was still there for similar premises. A disused lift shaft offered for lease in the depths of Melbourne's lockdowns attracted five interested parties, before ultimately being rented by local sweet tooths Mork Chocolate – who have turned it into a contender for the smallest chocolate shop in the world. 'It went bananas,' Mr Lockwood said. Today, he estimated the 6.5sq m premises would be worth as much as $350,000. 'And if there were 20 of them today in the city, they would lease in a month,' Mr Lockwood said. Mork co-founder Kiril Shaginov has added a floor, a roof and designed a modest shop front to be run out of a window cut into the back wall in an effort to make it a popular destination. 'It was crazy, but in my head it was perfect,' Mr Shaginov said. It now contains a cake fridge, a small coffee machine, two bar fridges and some elevated cupboards for storage — leaving room for two people inside of it, at a maximum. While expensive by a square metre rate, Mr Shaginov said it didn't feel that way for the returns it brought in. 'It's about four years it's been there now and we get a lot of regular trade, and it's an iconic laneway so we get a lot of tourists who do chocolate or a streets of Melbourne tour,' he said. Real Estate Institute of Victoria acting chief executive Jacob Caine said the tiny commercial spaces 'surpass anything in the residential space by a gazillion miles'. 'This is indisputable evidence that great value can come in small packages,' Mr Caine said. 'And that's testament to the value and the opportunity that those kind of micro-retail spaces can offer.' Committee for Melbourne chief executive Scott Veenker said the government needed to do what it could to ensure business conditions continued to encourage 'unique Melbourne icons to thrive'. 'Melbourne as a laneway city is renowned for its hospitality and retail,' Mr Veenker said. 'We want consumers, tourists and businesses to continue to choose Melbourne and Victoria as a destination to visit and a place to do business.' Industry consultant and Property 28 founder Clinton Baxter said the values were historically the highest per square metre along Swanston St, due to the high foot traffic walking — but despite working on some of the highest priced deals per metre in the past, said they were less likely today. 'It's less likely at the moment, after Covid had such a detrimental impact on the CBD and the market,' Mr Baxter said. 'But they will come back. With population growth, that will lead to a return and a catch up.' It's a different story in the suburbs, with a tiny kiosk measuring just 8sq m in the middle of Northcote shopping plaza hitting the market. Despite being just over half the size of a typical Victorian carpark's about 13sq m size, if sold in line with its $450,000 asking price the 97/ 25-143 Separation St would come out to a hefty $56,250 a metre, making it one of the priciest properties ever sold in the suburb. It would even likely eclipse the likely price per metre cost of a $1m bathing box sale in Portsea. Hudson Bond's Josh Schache said the 'unique' listing offered a lot of value, and even at the $450,000 asking price would return about 5.6 per cent a year — better than any high interest rate bank account today. With the rent already locked in for future rises, Mr Schache is expecting strong interest in the property – particularly with the plaza set for a $500m redevelopment. 'So, in terms of an investment opportunity, it stacks up,' he said. 'In terms of what we're seeing at the moment, you'd be pretty happy to get 5 per cent. And with the rent to go up, that will only increase.' In Footscray, Trimson Partners' John Verducci sold a Barkly St premises measuring just 27sq m for $420,000 in 2020 — more than $15,500 a metre. In a further positive sign for the suburban market for minuscule real estate offerings, Mr Verducci estimated it would be worth $450,000-$500,000 today — even factoring in a slowdown from the Covid period. While it suits the travel agent currently located there, he said it was really about the size of a few ATMs. However, it's a tiny store currently home to a Fromagerie across the road that stands out as the most impressive effort to squeeze more retail space into the suburb. It used to be a laneway, before someone bought it and turned it into a three-storey shop on a plot of land measuring barely 20sq m. 'It was surprising to see them pull it off,' Mr Verducci said. 'Who would have thought of sticking three shoeboxes on top of an old laneway and renting them out?'
News.com.au
03-07-2025
- Business
- News.com.au
Prime Altona swim school property heads to auction
It's where thousands of westside kids learnt to swim, where parents sat through decades of weekend lessons, and now, Altona's best-known pool is going under the hammer for the first time in 37 years. The longtime home of Sweeneys Swim School at 116 Pier St is heading to auction with a $3m price guide, offering landmark land content and benchmark scope for development in the heart of one of Melbourne's fastest-growing bayside precincts. Known to generations of locals, the site has housed the swim school since 1988 and spans approximately 938sq m. The building's 615sq m footprint includes a heated indoor pool, squash court, changerooms, reception and on-site parking, just two minutes' walk from Altona train station and around the corner from the beach. Offered as a freehold-only sale through an executor's auction, the property is securely leased until 2027 with two five-year options, delivering a $170,018 annual return plus GST and outgoings, and 4.5 per cent annual increases. Fitzroys' Ervin Niyaz and David Bourke, in conjunction with Harry Karageorge of Sweeney Real Estate, are handling the campaign and expect strong interest from investors, land bankers and developers seeking a prime mixed-use project site with five-storey potential. Mr Niyaz said the opportunity was rare for Pier Street and packed with upside. 'This is a true landmark holding with five-level development potential and a secure tenant that's been part of the west for nearly 60 years,' he said. 'Buyers can land bank it with confidence while preparing plans for a new chapter in Altona's main street.' Mr Bourke added the site's zoning and scale offered serious scope for a residential or retail-based development in a lifestyle-rich and highly connected suburb. 'It's rare to find nearly 1000 square metres on Pier Street with zoning that supports major growth. Add in a tenant like this and you've got a standout opportunity,' he said. Sweeneys Swim School was founded by Joan and Leon Sweeney in 1968 from a backyard pool in Queen Street. In 1988, they relocated to Pier St to meet surging demand, becoming the first private swim school in Melbourne's west. 'This building has been part of local family life for decades — now someone else has the chance to define its next evolution,' Mr Niyaz said. The on-site auction will be held Wednesday, July 9 at 12pm.
News.com.au
16-06-2025
- Business
- News.com.au
Surprise Woolies and IGA listings spark buyer rush
A forgotten Woolworths in Melbourne's west and a humble IGA in the northeast have become the city's unlikeliest property powerhouses, and savvy investors are already circling. The two suburban supermarket sites – one vacant, the other trading under lease – have been owned by local families for decades. Now, for the first time in up to 40 years, they're hitting the market with agents expecting serious competition from developers, land bankers and big-brand retailers chasing a slice of Melbourne's growth corridor action. At 39 Borrack Square, Altona North, a sprawling 1871sq m self-contained building once home to Woolworths is being offered with vacant possession. The site features a rear loading dock, cool rooms, amenities, offices and three street frontages, forming the heart of the Borrack Square convenience precinct. It's the first time the property has been publicly offered in 25 years. Fitzroys agents Ervin Niyaz and David Bourke are marketing the former Woolies, calling it a 'rare opportunity' in one of the west's fastest-changing neighbourhoods. 'We're expecting interest from supermarket operators, large format retailers, and repositioning specialists,' Mr Niyaz said. 'It's surrounded by strong foot traffic drivers like Chemist Warehouse, Australia Post, TAB and the Millers Inn, and sits directly opposite a large public car park.' The location is further buoyed by the soon-to-be-completed West Gate Tunnel, which will offer a crucial alternative to the West Gate Bridge and improve commuter access across the western suburbs. Mr Niyaz said the property could be re-leased as-is or repositioned, with the surging population and workforce in Altona North, including the nearby Myer distribution centre, Toyota R & D facility, and Mobil refinery adding to its appeal. 'This is the kind of asset you buy now and thank yourself for later,' he said. Over in the northeast, Fitzroys' Chris Kombi, Chris James and Ben Liu are handling the sale of 90-94 Lower Plenty Rd, Rosanna, a long-held supermarket investment with strong holding income and future redevelopment upside. The 540sq m building is currently occupied by a high-performing IGA + Liquor and features a licensed Tattslotto outlet built into the checkout area. It's on a generous 737sq m Commercial 1-zoned block, with rear access, seven on-site car parks, and a commanding 16.4m street frontage. A price of $3m-plus is expected. 'The property has been in the same family for 40 years and has operated as a supermarket for more than 60,' Mr Kombi said. 'It presents a rare dual benefit, you're getting immediate rental income plus the long-term potential to redevelop in a rising location.' The IGA is on a 5+5-year lease from November 2022, providing holding income while buyers explore their options. The property sits within Rosanna Village's popular shopping strip, close to Chemist Warehouse, Australia Post, cafes, fitness centres and takeaway outlets, and just a short walk from the recently rebuilt Rosanna train station. 'This is a classic landbanker's dream,' Mr Liu added. 'You've got walkability, a high-growth catchment and zoning that allows for future flexibility.' Recent high-density apartment builds in Rosanna have transformed the area's demographics, bringing in more young families, professionals and higher property values.
News.com.au
03-06-2025
- Business
- News.com.au
Melbourne CBD property with former cinema history hits market for $4.5m
A former silent cinema site in Melbourne's East End could be reborn as savvy investors circle a rare dual-frontage property on Bourke St. The ground floor and basement of 151 Bourke St, which opened in 1916 as the Empire Picture Theatre, has hit the market with a combined price tag of $4.5m. The site offers rare vacant possession and dual frontages to both Bourke St and Coromandel Place. Fitzroys agents Chris Kombi, Lewis Waddell and Ben Liu are handling the listing and said the space has already drawn interest from bars, gyms and luxury retailers looking to tap into the CBD's rising foot traffic. 'It's in that sweet spot between Bourke Street Mall and Chinatown, where things are buzzing again midweek and into the weekends,' Mr Kombi said. The ground-floor space spans 185sq m with over seven metres of Bourke St frontage, while the 364sq m basement is self-contained and separately accessed from the rear laneway. Both levels are being offered individually or together, and include toilets and airconditioning. While the cinema's original detailing is long gone, the site's century-long evolution adds depth and intrigue. The building first opened in 1916 as the Empire Picture Theatre, one of Melbourne's earliest purpose-built cinemas. It was later transformed into the Centenary Palace dance hall, and in the 1930s was remodelled by architects Oakley & Parkes, best known for designing the Shrine of Remembrance, into a Malcolm Reid department store. The listing comes as new Fitzroys analysis shows retail vacancies in the CBD have plunged from 14.1 per cent to 6.1 per cent in two years, driven by a surge in food, beverage and entertainment tenancies. Hospitality operators now make up 47.4 per cent of new Melbourne CBD retail tenants, up from just 34.1 per cent at the start of 2023. Mr Kombi said the East End of the Melbourne CBD had become a focal point of activity, particularly with the completion of nearby developments including the Maison Bâtard restaurant, Melbourne Place Hotel, and Merivale's proposed multi-level precinct. 'We're seeing strong pedestrian flows,' he said. 'Workers during the week and tourists on weekends. 'Vacant possession gives buyers flexibility, and that's rare in this part of the city.' The site is not heritage-listed at street level, making it easier for buyers to renovate or reposition the facade, and while no liquor licence is currently in place, Mr Kombi said the zoning allowed for a wide range of uses subject to council approval. Fitzroys has received enquiries from both local buyers and offshore investors, particularly from mainland China. 'There's no doubt the CBD is back,' Mr Kombi said. 'And buyers want to be part of what comes next.' Expressions of interest close 3pm, June 18.
