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Retail properties have shown remarkable strength amid Melbourne’s latest lockdown, with a commercial group revealing the results of two successful auctions.
Fitzroys reported two successful auctions in the week ending 30 May 2021, where prime retail properties were sold in Church Street, Brighton and Burke Road, Camberwell shopping strips for a combined value of over $12 million.
“Bricks and mortar assets with secure leases and which are well located in Melbourne’s suburban shopping strips have become more highly sought-after during the COVID period and in the ultra-low interest rate environment,” Fitzroys director and auctioneer David Bourke explained.
Despite the announcement of restrictions associated with yet another “circuit-breaker” lockdown in the state – originally intended to last seven days, Fitzroys decided to forge ahead with the planned auctions, citing campaign momentum for the agency’s decision to take the auctions online.
Mr Bourke ultimately held the auction of 634 Burke Road, Camberwell from the comfort of his own home, but welcomed bidders from a range of locations – from Queensland and Melbourne to regional Australia and Hong Kong.
In the end, the property sold for $6 million; $1.4 million above the reserve, at a 3.58 per cent yield, with the exchange of contracts and transfer of funds all done electronically.
The auction for 13 Church Street, Brighton was also a success, garnering a $6.07 final selling price at a tight 2.5 per cent yield.
According to Fitzroys auctioneer Mark Talbot, the result was “one of the tightest achieved in a Melbourne shopping strip asset in recent years”.
Mr Bourke considers the results a “testament to the resilience of Victorians and Melbourne’s neighbourhood strips”.
“Melbourne’s shopping strips have continually demonstrated their resilience over the past year. These results reflect confidence in neighbourhood strips’ enduring presence in the city, and reinforce the integral role they play as the heartbeat of their local communities,” he concluded.
A similar story for residential
At the end of the day, Victoria’s agents have been unfazed by the snap lockdown, according to Ray White Victoria and Tasmania CEO Stephen Dullens.
In fact, CoreLogic has reported the third biggest auction week of the year last week despite the Victorian lockdown, with Melbourne seeing the highest number of auctions among the capital cities at 1,264, followed by Sydney with 1,177.
“After a week with so much change across Victoria, it’s been tremendous to see such fantastic results achieved across all property segments in Melbourne,” Mr Dullens concluded.
REB will be keeping a close eye on whether the momentum is maintained through a second week of lockdowns, following the 2 June announcement from the Victorian government.
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