Perth investor pays $1m over reserve for Brighton shops

Premium prices are par for the course when it comes to residential properties in the upmarket Melbourne bayside suburb of Brighton.

And it’s clear commercial properties are in similar demand, with a pair of small Brighton shops selling for $1 million above their reserve mark.

The shops, owned by a local and sold at auction to a keen Perth investor, sold as one parcel for $3.835 million in a tiny 2.2% yield – one of the sharpest yields seen in Melbourne this year.

Four other bidders made a play for the properties, with 77 bids required to find a winner.

The Brighton shops return more than $92,000 in rent each year.

Set amid boutiques and cafes on popular Bay St, the neighbouring shops measure 231.5sqm combined, on sites totalling 414sqm, and are leased to Party Affair and Follett & Co. Together they currently return $92,200 per annum.

Co-agents Burgess Rawson and Fitzroy’s led the marketing campaign, with Burgess Rawson’s Graeme Watson saying the property clearly had scope for development.

“The property has a wide street and rear frontages of 11.58 metres and a substantial site area of 414sqm. A wide rear laneway providing easy access enhances the redevelopment opportunities,” Watson says.