Commercial and residential property both on the rise in Footscray

Stephen TaylorJuly 2, 20130 min read

Retail premises and residential offerings are benefitting from Footscray’s rising property market, with many up-and-comers attracted to the area’s proximity to the CBD, trend towards high-density living, perceived cache and cheaper housing stock.

The suburb eight kilometres from the city has long been regarded as a well kept secret by locals who love its cosmopolitan feel and edgy street cred.

Herron Todd White reports the Melbourne 2030 planning strategy has designated Footscray as one of the major activity centres which are the preferred locations for future higher density residential land and mixed use development.

Houses or units have the potential for strong growth in the next four to six years, according to HTW, especially those in West Footscray, Footscray and Maidstone.

They are showing positive signs for strong growth in the detached/semi detached market. Many houses are under $500,000.

On the commercial side, a retail premises at 15 Paisley Street, Footscray will test the waters when it goes to auction on July 24.

It’s been used by a children’s wear retailer for the past 20 years.

Kliger Wood’s Lou Montalti and Nick Breheny are handling the sale.

The shop on 194 square metres earns a rental of $30,260 and is on a 3x3 lease from September 2011.

Rents are fixed for the first year and go up 4% in the second. Zoned Business 1 the shop has rear access via a council car park which Montalti said was a point of interest.

He says the sale could reap $750,000 to $845,000.

Sold at auction recently was a two storey brick shop, at 11 Paisley Street (pictured below), for $845,000 on an indicative yield of 3.5%.

It was touted as "a rare opportunity in a tighly held strip".

footscrayjuly3one

The shop has a five metre street frontage and is on 146 square metres. It’s been the premises of a longstanding jeweller Kim Trang who has an option for a further three-years at $30,100 net rental plus all outgoings except land tax, says Kliger Wood’s Montalti.

A warehouse at 145-147 Geelong Road, Footscray (pictured below), has sold for $550,000.

Sweeney Estate Agents Footscray handled the sale of the 340 square metre block.

footscrayjuly3two

The high exposure site is passed by up to 60,000-plus vehicles a day. Future uses could be a multi use development site, subject to council approvals.

The zoning is Business 3. The Footscray and Maidstone residential and commercial areas are tipped to benefit from a range of developments, such as at the railway station, Plaza and Whitten Oval.

It also helps being home to Victoria University, Western Hospital and Lonely Planet Publications.

Footscray residential real estate activity in the past 12 months:

Houses

• 163 houses sold

• $520,000 median sale price

• 69 average days on market

Units

• 155 units sold

• $364,000 median sale price

• 102 average days on market

Stephen Taylor

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