Carlton retail property sells $1 million above reserve

A private investor has fought off strong competition to secure a Carlton retail property for $3.96 million at auction. 

With a crowd of more than 200 people, the bidding started at $2.4 million before selling to a local buyer for a land rate of close to $30,000 per sqm.

The auction was held onsite as 265 Lygon Street was sold with a six year lease, providing an annual income of $148,567 and a 3.3 percent yield.

The freehold property, which sold for $1 million over the reserve, comprises a highly exposed building with prominent frontage to Lygon Street, as well as rear laneway access. 

CBRE’s Rorey James said the property was keenly sought after, attracting a total of 85 bids on the day. 

“The strong level of interest seen in this property is an indicator that core retail property will always be in demand, from both an international and domestic perspective,” Mr James said. 

“Furthermore, the recent interest rate drop to 1.75 percent is fuelling more interest from investors looking to inject capital into real estate.”