STONNINGTON MELBOURNE RETAIL STRIP INVESTMENTS MARKET INSIGHT 1ST QUARTER 2018 - Emmetts Real Estate
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
M E L B O U R N E R E TA I L STRIP INVESTMENTS STONNINGTON MARKET INSIGHT 1ST QUARTER 2018
ALEXANDRA AVE
PUNT RD
Commercial Retail Strips
TOORAK RD
3 4 1 Chapel Street, Windsor, Prahran & South Yarra
KOOYONG RD
WILLIAMS RD
GLENFERRIE
1 2 Greville Street
RD
8
3 Toorak Road, South Yarra
COMMERCIAL RD
5 MALVERN 4 Toorak Village
RD
CHAPEL ST
2 5 Hawksburn Village
HIGH ST
6
6 High Street, Armadale
7
7 Glenferrie Road, Malvern
DANDENONG RD 8 Commercial Road, Prahran
Market Commentary.
Strong investment demand continued in the first quarter of 2018 throughout Stonnington’s retail
strips. The Stonnington market produced a number of prime investment opportunities in the
first quarter with Toorak Road, South Yarra and Hawksburn Village continuing to outperform.
The first quarter typically lacked investment opportunities in the $10 million plus bracket despite
significant unsatisfied demand at this level.
On the investment front, approximately 9 properties changed on a tight 1.9% yield. Glenferrie Road Malvern has also kicked
hands in the sub $10 million bracket throughout the first quarter off the year in fine form, with 224 Glenferrie Road, tenanted
of 2018 totalling close to $18.37 million. by Boy + Co, selling for $1.82 million, on a yield of 2.52% at
auction. Whilst initial yields ranged between 1.8% and 4.5%,
Traditionally a quieter quarter in the retail strips, Q1 2018 saw
Toorak Village, High Street Armadale along with Chapel
strong sales activity including a number of prime shops. Toorak
Street Prahran and Windsor all lacked supply throughout the
Road South Yarra saw a flurry of activity with 306 Toorak
first quarter of 2018. Emmetts are currently in discussions
Road changing hands for $2.95 million on a yield of 3.7%. The
with a number of investors seeking retail strip investment
property was leased to Zen Charcoal BBQ on a 5 year lease
opportunities in the $3 million to $25 million bracket.
with passing rent of $114,000 per annum.
Leasing demand remained steady through the first quarter with
Hawksburn Village continued the out performance it approximately 3,020 sq m of retail space leased throughout
demonstrated throughout the second half of 2017. 553 Malvern the area.
Road leased to fish and chip shop Seafood sold for $3.11 million,
VOLU ME VOLUM E INIT IAL
S OLD LEA SED YIELD S
$18.37 million approx 3,020 SQM approx 1.8% to 4.5%
Quarterly Focus:
High Street, Armadale.
Long regarded as one of Melbourne’s blue chip retail strips, • Demographic Dividend. Located just 7 kilometers from the
High Street Armadale over the past 10 years, has evolved into Melbourne CBD, Armadale is extremely accessible with
one of Australia’s hottest retail strips. Formerly renowned for transport facilitated via two train stations, Armadale Station
bridal boutiques, rug traders and antique dealers, Stonnington’s and Toorak Station, as well as a network of trams and buses.
ritzy glamour strip now attracts a mix of the who’s who of Median house prices are now $2.48 million as at December
international and Australian fashion retailers, specialty health, 2017 (Property Data) and have grown steadily from a median
cosmetic, homewares stores, excellent cafes, wine bars and of $1.58 million in June 2014. With a population of 9,000
upmarket grocers. Factors underpinning High Street’s success people (ABS), Armadale is home to a strong catchment largely
are largely to do with its strong local catchment combined comprised of professionals and managers (57.8% of the
with its visually pleasing retail environment and stock of working population over the age of 15) (ABS). The suburb also
attractive shops. has a high proportion of families comprising approximately
53% of households (ABS). Families are attracted to Armadale
Originally anchored around the former Armadale Hotel, built
by the close proximity of premier private schools such as
around 1850 - currently a Woolworths Metro, High Street now
Lauriston Girls School and Loreto Mandeville Hall. High Street
showcases approximately 240 different businesses, including
also draws shoppers from surrounding suburbs which all
names like Mecca Cosmetica, Acne Studios, Scanlan Theodore,
benefit from high median family incomes including Malvern
Aesop, Zimmermann and Jac + Jack. Along with a new
($3,213), Toorak ($3,339) and Prahran ($2,581) which compare
generation of lifestyle oriented cafes and restaurants, High
to the national average of $1,734 (ABS).
Street is currently one of Melbourne’s most elegant retail strips.
Emmetts are currently in discussion with a number of investors seeking retail
strip investment opportunities in the $3 million to $25 million bracket.
• Exclusive Fashion Pitch. High Street’s fashion line up along the strip as well active users at differing times of the boasts an exclusive array of fashion houses; many of whom day. The most recent significant development site sale in choose to make High Street their second or only shop front the street was 1167 to 1193 High Street for $21.5 million in the in Melbourne outside of the CBD and the major shopping second half of 2017. The holding comprised a retail, office centres. Acne Studios of Sweden is a prime (pardon the real and car park building on a significant landholding of 2,400 estate pun) example of this alongside Australian designers sqm* and an 80 meter frontage to High Street. The sale Scanlon & Theodore, Zimmermann, Jac & Jack, Camilla and reflected a land rate of $8,958 per sq m. The Capocchi site Marc and Assembly Label. This feature cements High Street, at 951 High Street also sold earlier in 2017 for $7 million. Armadale as one of Australia’s leading retail fashion strips Comprising a land holding of 809 sq m approx, and 20 metre highlighting its visually pleasing environment, the strength frontage, the sale reflected a land rate of $8,652 per sq m. of its catchment and its ability to draw shoppers from farther afield in search of a destination retail experience. • High Quality Developments. Development sites around High Street are harder to source than many other strips in Stonnington and projects are typically of a boutique nature. There are a number of high-end developments taking place with approximately 250 new dwellings (Urban Melbourne) at differing stages of planning. These range from typical two bed apartments to larger townhouses. Most projects typically comprise high end specifications to satisfy the target market of downsizers and buyers seeking larger format apartments in boutique projects. On High Street, the 3 level approved CHRONICLE with 32 apartments and new ground floor retail and ONCE at 959 High Street with approval for 28 apartments and ground floor retail (incorporating the existing retail buildings) will further enhance the diversity of architecture Contact us today for a confidential discussion. Level 7, 24 Collins Street, Melbourne VIC 3000 03 8692 0088 emmettsrealestate.com.au
Sales Activity.
There were approximately 9 sales recorded in Stonnington throughout the 1st quarter
of 2018 totalling approximately $18.37 million. Some of the key sales were as follows:
2018 ADDRESS SUBURB TENANT PRICE ($) YIELD
Jan 18 201 Greville Street Prahran Brick and Mortar 1,530,000 4.72%
Feb 18 553 Malvern Road Toorak Seafood on Malvern 3,110,000 1.90%
(Hawksburn Village)
Mar 18 Shop 10, 101-105 Toorak Road South Yarra Short Term Lease 200,000 7.50%
Mar 18 224 Glenferrie Road Malvern Boy + Co 1,830,000 2.52%
Mar 18 6/1097 - 1111 High Street Armadale Multiple Tenancies 1,700,000 5.29%
Mar 18 306 Toorak Road South Yarra Zen Charcoal BBQ 2,950,000 3.70%
2017 ADDRESS SUBURB TENANT PRICE ($) YIELD
Nov 17 1167-1193 High Street Armadale Multiple tenancies 21,500,000 Sub 2.7%
Aug 17 467, 469 & 471 Chapel Street South Yarra VP, VP and Windsor Smith 8,250,000 N/A
Oct 17 131-133 Glenferrie Road Malvern Six tenancies - including Optus 7,850,000 2.90%
and Flight Centre
Nov 17 146 Glenferrie Road Malvern Vacant possession - former 6,392,000 VP
bank site
Dec 17 245 Glenferrie Road Malvern 7 Eleven 5,150,000 4.17%
Dec 17 173-175 High Street Prahran Café, 4 offices, 2 apartments 4,645,000 Sub 3.5%
Oct 17 200-202 Chapel Street Prahran Vacant possession - former 4,250,000 VP
McPhees
Nov 17 595 Malvern Road Toorak Grace 3,750,000 1.80%
Feature Transactions.
LD
LD
LD
SO
SO
SO
467, 469 & 471 Chapel Street, 942 - 946 Whitehorse Road, 116 - 122 Hardware Street,
South Yarra Box Hill Melbourne
Emmetts drew significant investor Emmetts achieved the biggest Emmetts sold 3 prime CBD laneway
and developer interest in these 3 transaction in the second half of 2017 investments including the world
adjoining prime shops in Chapel in Melbourne’s Eastern Core retail renowned Hardware Societe Café
Street, South Yarra. strips with the sale of this multi-let at strongly contested auctions.
prime investment.
Speak To Us...
…before making any decisions in relation to selling
or leasing your property.
The team at Emmetts comprise some Our specialist retail strip services include:
of Melbourne’s most professional and • Investment sales advisory & auctions
experienced retail investment and leasing • Investment acquisitions advisory & auction bidding
agents. Emmetts provides a fresh approach to • Leasing
achieving premium results. Our team will add • Market rent reviews
significant value when it comes to selling or • Property management
leasing your strip retail property. For results • Strategic advice & consulting
superior to any of our competitors, contact • Free market appraisals
any of our team members below.
In each of the above areas, we offer a strategic, well
considered and holistic service so that our clients
can rest assured in the knowledge the best possible
result will be achieved.
Since establishment in April 2017, Emmetts have been
entrusted by clients to advise on over $130 million of
transactions. Contact us to find out why.
Charles Emmett Andrew Milligan Geoff Emmett
+61 402 358 069 +61 421 559 992 +61 409 330 561
charles.emmett@emmettsrealestate.com.au andrew.milligan@emmettsrealestate.com.au geoff.emmett@emmettsrealestate.com.au
Contact us today for a confidential discussion.
Level 7, 24 Collins Street,
Melbourne VIC 3000
03 8692 0088
emmettsrealestate.com.au
Disclaimer: Should your property be under an agency or management agreement with another agent, please disregard this communication. Some of the
information contained within this communication has been sourced from third parties and may not have been verified. This information subsequently should
not be relied upon. Emmetts Real Estate Pty Ltd does not accept any liability in relation to any use of the information contained within this document.
You can also read
