Two square metres Melbourne CBD retail shop sells for $380,000

A two square metre retail shop in the heart of Melbourne's CBD sold at auction for a record $190,000 per square metre.

The shop 3, Causeway Lane property sold under the hammer for $380,000, smashing price expectations of between $200,000 and $220,000. The sale reflected a yield of just 3.6%.

Around 150 people gathered to see the keenly contested shop, which Fitzroys selling agent Charles Emmett said attracted 50 bids by eight parties during the auction.

The property is currently leased to food and beverage retailer Local Birds on a seven plus five year lease, which started in June 2009.

The retail premises forms part of the former Union Bank Building, better known as Causeway House, which was constructed in the 1930s.

Fitzroys recently sold shop 5 and the Basement of Causeway House for $1.51 million and $675,000 respectively at separate auctions, and will put shops 6 and 7 to auction on 14th November.