Hoppers Crossing loses some of its bounce

A retail shop in Hoppers Crossing has sold at auction for $635,000 in lacklustre bidding. The price represents a yield of 7.9% on rental income of just under $50,000.

Just one bidder in a room of a 50 investors at Crown Casino in Melbourne made an offer on the 90-square-metre property currently tenanted by takeaway Noodle Land, which also has a shop in Werribee.

The investor had initially bid at $620,000, below the reserve price, but a revised offer of $635,000 was accepted by the vendor. The property was marketed for sale by Jamie Perlinger and Billy Holderhead from Burgess Rawson.

Expectations for the property were around the $680,000 mark.

The sale of the shop follows a 5,575-square-metre 7-Eleven service station at Hoppers Crossing on the corner of Old Geelong and Heaths roads selling for $3.49 million, the highest price achieved in an auction of 12 such sites. The sale was achieved at a yield of 6% and marketed by Jones Lang LaSalle agents Steve Bolton and Ben Galanos.

The property sold with a seven-year lease with three renewal options of seven years.

It is located at the front of the Hogans Corner Shopping Centre, which is anchored by Woolworths.

Hoppers Crossing is in the middle of the municipality of Wyndham, the fastest-growing municipality in Australia.

According to ABS data the Wydnham population increased by 8% from 2009 to 2010 to stand at 154,094 as of June 2010.