South Yarra Melbourne
Fitzroys have facilitated the sale of four adjoining freeholds on Melbourne’s iconic Chapel Street to a local investor, showcasing the strength of the Chapel Street shopping precinct. Image – Canva
  • Four Chapel Street freeholdings have sold to local investor for $5.825M, in deal negotiated by Fitzroys
  • Marks first time property has sold since being purchased by former owner in the 1940s
  • Showcases resilience of Chapel Street shopping precinct, as area undergoes several developments

Four adjoining freeholds in South Yarra’s famed retail precinct, Chapel Street, have sold for $5.825 million to a local investor.

These latest sales bring Fitzroys‘ total sales of major shopping strips within the last few weeks to an eye-watering $41.585 million

The property parcel at 587-593 Chapel Street was campaigned by Fitzroys agents Mark Talbot and David Bourke.

The sale marks the first time the four freeholds have changed hands since purchased by the former owner in the 1940s.

Coveted Chapel Street freeholdings sold

The Chapel Street parcel spans 345 sqm of Activity Centre-zoned land, with each of the four freehold buildings possessing their own title.

The property offers an expansive 14.6m of street frontage to Chapel Street and rear access from Penny and Pattison Lane.

The freeholds are currently tenanted by Jumi’s Cafe, Bisonte and Green Cup, attracting interest from several bidders. The property sold at auction to a local investor at a passing yield of 2.9%.

“This was a really good result reflective of the demand from buyers we’re seeing across the market.”

David Bourke, Fitzroys

“The market continues to recognise the resilience shown by Melbourne’s shopping strips, and we’ve seen again there’s a large amount of capital pursuing these types of opportunities after a lack of quality stock was made available over the past two years.”

Mr Talbot added that the property presented huge potential for investor, part owner-occupiers, value-add players and developers, all reflected in the inquiries received by Fitzroys.

“It’s incredibly rare to find an opportunity as versatile as this, let alone in the absolute
prime of arguably Australia’s most famous shopping strip,” he said.

Chapel Street Fitzroys
587-593 Chapel Street, South Yarra. Image supplied.

Chapel Street remains resilient

Mr Talbot described Chapel Street as in the midst of a “transformative period”, with new developments always underway in the lively pocket of South Yarra.

“South Yarra’s undergoing a transformative period that is bringing new residential, retail, office, and hospitality offerings, and the beating heart of that is Chapel Street.”

Mark Talbot, Fitzroys

Despite the impacts of Covid felt deeply throughout Victoria, Chapel Street remained one of the strongest retail precincts in the state.

According to Chapel Street’s annual report for 2020-21, the area was the only Victorian shopping precinct to keep more stores open than closed in the financial year.

The report also indicated a decline in the retail strip’s vacancy rate in February 2021, as compared to the pre-Covid rate in 2019.

The Chapel Street area is also receiving significant investment, with an array of new projects and redevelopments set to continue its transformation.

Property developer Gurner received approval last week for a $1.5 billion redevelopment of the iconic Jam Factory, in partnership with Newmark Capital and Qualitas.

The project will deliver a brand new five-tower development to Chapel Street, combining retial, residential, hotel and commercial spaces.

Meanwhile, Melbourne-based developers Goldfields are closing in on the completion of Goldfields House, a luxurious office building located at 627 Chapel Street.




You May Also Like

Work from home is here to stay, and Australia’s secondary offices are at a turning point

Secondary office assets face challenges with poor uptake and declining values, especially in B and C-grade properties.

Why Australia needs more industrial assets to boost productivity and growth

A new report reveals that Australia’s industrial assets handle over $1.2 trillion worth of products annually.

Sydney’s retail sector continues to improve, with one area boasting zero vacancy

Vacancy rates for Sydney’s prime retail core have dropped to 8.3%, with the one area recording vacancy rates of zero.

Construction titan Beehive Homes finds its new home in a prime Williamstown North warehouse

NSL Property Group facilitated the $650,000 deal, highlighting the property’s prime location and industrial versatility.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Perth property market: The definitive guide to buying a modular home

Modular homes, misunderstood as inferior, offer efficient, durable alternatives to traditional construction methods.

The 50 square metre solution getting people into their first homes and delivering an answer to ...

Small, modular homes could be a key part of the broader solution to Western Australia's current housing challenges.

The hardest time ever to buy a house in Australia: How Australian home buying got ...

We're currently in a buyer's market, but that doesn't mean Australian house prices are crashing.