Market healthy as Waverley Medical Centre sells

The Waverley Medical Centre is in a premium location.

Strong interest in a well-known Monash medical centre has proved a welcome injection in the commercial property market.

Waverley Medical Centre at 242-244 Springvale Rd, Glen Waverley sold for an undisclosed sum believed to be substantially more than the advertised price range of $5-$5.5 million.

The facility is across the road from The Glen shopping centre, which has a $500 million upgrade due for completion early next year.

Commercial Insights: Subscribe to receive the latest news and updates

Ray White Commercial Glen Waverley director Ryan Trickey says the centre received more national inquiry from NSW, QLD and SA than the agency’s other listings over the past year.

The Waverley Medical Centre has a rental return of almost $300,000 a year.

“There was a huge amount of interest in this property, with more than 120 inquiries during the campaign, with 20 per cent coming from interstate and 10 per cent international,” Trickey said.

“There’s a particular desire for medical precincts at the moment with the good ones offering great and stable cash flow.”

Eight out of 15 groups made competitive offers on the property, with three competing at the final stages of negotiation, Trickey says.

“The more inquiry — generally speaking — you’ve got a better chance,” he says.

“But you never truly know off the back of a fairly uncertain market.”

The medical centre has been operating for over 30 years.

Outbidding two interstate buyers was a Melbourne couple happy to hang on to the medical centre as a commercial investment, with the lease up for renewal in 2023, Trickey says.

“It’s just nice to see that inquiry and activity — it shows there’s confidence returning to the commercial space,” he says.

“We’re not going to be shooting the lights out for the next 12 to 24 months, I just think stability is what’s required — business as usual would be good for everyone.”

This article from Leader Newspapers originally appeared as “Waverley Medical Centre strong sale evidence of a healthy market”.