The property achieved a 2.2 per cent passing net yield and demonstrating the continued strength of Activity Centre assets despite broader market pressures.
Marketed by RWC Glen Waverley, the property at 73 Railway Parade North attracted more than 75 enquiries and four motivated suitors. Due to an international delay, the eventual purchaser, a syndicate now planning to maximise the site’s low coverage, was unable to bid at auction and was encouraged to submit a pre-auction offer. A tight deadline saw negotiations between all the top groups continue late into the evening, with the deal finalised at 10pm on the eve of the auction.
Director Ryan Trickey said the result highlights both strong demand for well-located commercial property and the increasing complexity facing investors in the current environment.
“Activity Centres continue to outperform the broader market, but commercial operators, investors and developers are certainly navigating difficult conditions around taxation, red tape and planning,” Mr Trickey said.
“Land tax in metro Victoria is a particular issue. Properties that sit outside the real development envelope are being dragged up in value because they’re benchmarked against nearby sites with major upside. We’re seeing single shops hit with $40,000 to $60,000 in land tax. These aren’t development landholdings, yet they’re being treated as if they are. The settings are too crude for a market this complex, but we’re working through it with our clients.”
Senior agent Will Jonas said the team’s knowledge of stakeholders and market dynamics played a pivotal role. “We understood every party’s motivations and that allowed us to create strong competitive tension throughout the campaign. The vendors were a family who had owned this property for more than 30 years, and achieving such a strong outcome before auction was incredibly rewarding.”
The property is fully leased to JRW Property International Pty Ltd on a long-term arrangement through to 2039, providing secure, passive income supported by fixed annual rent increases. Its position directly opposite The Glen Shopping Centre, moments from Glen Waverley’s transport interchange, and at the doorstep of the future Suburban Rail Loop, underpins its long-term growth outlook. The two-level freehold offers current functionality with flexibility for future adaptation or improvement (STCA), further enhancing its appeal.
Mr Jonas said the level of enquiry reinforced confidence in prime suburban commercial real estate. “Even in a cautious market, genuinely irreplaceable locations, especially those benefiting from transformative infrastructure like the SRL, continue to draw deep competition. This sale is another example of Activity Centres defying the broader headwinds in Melbourne’s commercial sector.”
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