Strong Auction Result Reinforces Confidence in the Globally Recognised Retail Strip
A strata-titled retail corner at 566 Chapel Street, South Yarra has sold under the hammer through a competitive auction campaign, handled by Stonebridge Property Group’s Strip Retail Investments team – Nic Hage, Rorey James and Ian Lam.
In an encouraging display of market confidence, four bidders competed strongly, driving the final sale price to $2,920,000. The result reflects a net yield of 5.99% and a blended building rate of $16,591 per sqm*.
The property is 100% leased to MOSCOT – this being their first standalone store in the Australian market.
In what has been a continued trend throughout 2025, three of the four bidders were based outside Victoria, including the eventual purchaser, who was New Zealand-based and sourced through Stonebridge’s Asia Practice team.
“The purchaser had been working with our team for over six months and had narrowly missed out on several strip retail and medical tenanted investment assets. They ultimately recognised long-term value in the South Yarra precinct, particularly given the volume of upcoming development,” said Ian Lam, Manager – Asia Practice at Stonebridge Property Group.
Chapel Street, South Yarra is undergoing a significant period of revitalisation, led by major projects such as Gurner™’s redevelopment of the Jam Factory, and the State Government’s proposed Activity Centre Program, which is anticipated to increase allowable development heights across the precinct.
While strata-titled and not poised for redevelopment, buyers acknowledged the broader improvements across the area and were confident in the future demand for retail.
“The result is regarded as strong and bodes well for the area,” said Nic Hage, Partner at Stonebridge Property Group.
“The building rate of $16,500+ per sqm is a significant premium to recent Chapel Street transactions, and the yield of 5.99% is positive given the rental rate.”
The 2025 leasing deal reflected a blended rental rate across ground and first floors of over $1,000 per sqm* — a benchmark not seen on Chapel Street for a number of years.
At the other end of the precinct, Stonebridge is currently offering 88 Chapel Street, Windsor — a leased investment situated amongst Chris Lucas’ Hawker Hall and Tombo Den. Recently renovated and offered leased, the property is expected to appeal to a wide range of buyers.
For further information or to arrange an inspection, please contact the exclusive selling agents:
Nic Hage – +61 448 782 594 – nhage@stonebridge.com.au
Rorey James – +61 439 400 081 – rjames@stonebridge.com.au
Ian Lam 林煒峻 – +61 416 621 859 – ilam@stonebridge.com.au
Stonebridge’s Strip Retail Investments team is a market leader with over 30 years of combined experience, specialising in the divestment of metropolitan Melbourne strip retail assets. The team is supported by Australia’s largest and most experienced Asia-focused commercial agency — Stonebridge Asia Practice.
Join The Discussion