The Melbourne-wide trend of vacant retail properties attracting strong attention from investors and owner occupiers has come to the city fringe. 

Heated competition between three bidders at the auction of 371 Bay Street pushed the price up to $1.31 million, with the property eventually being knocked down to an owner-occupier. 

Fitzroys agents James Lockwood and David Bourke, in conjunction with Patrick O’Callaghan of O & Co, sold the property on behalf of a family that had owned the asset for 35 years, most recently using it for their own photography studio. 

At a glance:

• Retail space at 371 Bay Street sold for $1.31 million at auction.
• Sales campaign managed Fitzroys agents James Lockwood and David Bourke, in conjunction with Patrick O’Callaghan of O & Co.
• Property has a two-storey 152 sqm building with a retail/studio space and a two-bedroom residence.

The auction followed a campaign that attracted more than 50 enquiries from investors and owner-occupiers. 

The property has a two-storey 152 sqm building with a retail/studio space and a two-bedroom residence, on a 169 sqm site with on-site parking and rear access. 

Mr Lockwood said Bay Street had experienced one the biggest population increases among Melbourne’s famed shopping strips in recent times, with a steady pipeline of residential development introduced over the past 20 years. 

“The purchaser is anticipating further growth in this prized inner city location as Melburnians continue to embrace apartment and townhouse living. 

“Ongoing residential development along Bay Street and through Port Melbourne will underpin its role as a lifestyle and hospitality destination, while its Victorian-era architecture, wide spaces, greenery and beachfront aspect provide a point of difference to other inner-city locations.” 

The strip is also located close to the Fishermans Bend precinct, earmarked for a large- scale boom in residential and commercial development across the former industrial region.  

Recently released data from the Australian Bureau of Statistics showed the Greater Melbourne area added 119,421 people over 2017-18, the most of any capital city, while the 2.5% growth rate was also the country’s fastest. 

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