Lucky 1.88% rental yield as 88 Kingsway, Glen Waverley shop fetches $3.61 million at Savills auction

The prime Glen Waverley restaurant retail premises at 88 Kingsway fetched $3.61 million when a disparate group of bidders sought the late March auction offering.

It has been conservatively expected by the Savills agency to fetch over $2.5 million with the 190 square metre property generating more than 150 inquiries mostly from Chinese Australian buyers. It was announced on the market at $3 million.

The interested parties had been attracted not only by the suburb's growth potential but the lucky street number 88. The rental income was $68,000 annually, reflecting an initial 1.88% rental yield.

Some 80 plus contracts had been issued, but there were just the eight bidder at the onsite auction attended by a large crowd on the footpath. Bidding opened at $2 million.

It was knocked down to a Chinese Australian buyer by Savills agents Joseph Catanese and Clinton Baxter. The retail property investor (pictured with smile below) migrated 27 years ago from Macau.

Adjoining the Century City Walk entertainment centre, it is a short walk from Glen Waverley railway station and its newly completed high rise residential.

Next door, 86 Kingsway fetched $1.2 million in 2011 for its 198 square metre space, reflecting $6,060 a square metre compared to today's $19,000 a square metre.

With 250 square metres, 101 Kingsway fetched $2.76 million 2011. There had been a $1.9 million sale in 2007 of 186 square metre premises at 106 Kingsway. There had been a $1.15 million sale in 2009 of 98 Kingsway which was 256 square metres. 69 Kingsway fetched $2.15 million in early 2012 for its 179 square metre holding.

The lease to Piatella Cafe runs until August 2016, with two five-year options to ­extend. 

The property has been held by the same couple for more than five decades.

The couple originally owned seven on the same street, but have sold them off gradually and this is their last holding.