Mornington Peninsula Commercial Real Estate

Commercial real estate on the Mornington Peninsula is in high demand (especially in popular suburbs with substantial shopping areas). Foreign buyers have been providing additional competitive against local investors.

A Singapore investor has paid close to $1 million above reserve to snap up a dual-frontage block on Mornington’s coveted Main St.

In June 2018, CBRE also sold the nearby Mornington Village shopping centre for $39.38 million.

Foreign buyers are also particularly in demand of healthcare-related properties in Frankston and the Mornington Peninsula.

Mt Eliza retail sells 30% over reserve

A SORRENTO landmark has chalked a price rise of more than $4.5 million in less than five years.

CBRE Melbourne stated the Mornington Peninsula has become a jewel of the Victorian property market. The Mornington Peninsula is emerging as one of Victoria’s most sought after property markets, with the area’s growing population and ongoing development paving the way for what is expected to be one of the strongest years for the region. Fellow selling agent, CBRE’s Sandro Peluso said Sorrento had emerged as one of the state’s strongest housing markets in recent years.

Point Nepean Rd commercial site expected to fetch $4.5 million

There are also a variety of different commercial developments underway attracting new businesses and shoppers to the area. You can see them here.

 

Melbourne’s Mornington Peninsula is emerging as a popular market for CBD investors, with the $5.435m sale of a retail property the latest in a string of transactions in the emerging hotspot.

CBD investors turn to Mornington Peninsula as market strengthens - CBRE Melbourne

 

10-16 Ocean Beach Rd, Sorrento, has risen $4.59 million in less than five years.

A long weekend holiday crowd of 250 jammed the sidewalk to watch five buyers bid. “There were three more Asian investors present but the bidding rose too quickly for them,” Mr James said.

 

FOREIGN buyers are joining local investors to snap up healthcare-related properties in Frankston and the Mornington Peninsula.

 

Commercial real estate in Rosebud was also popular last year
Rosebud entertainment complex Top Fun on the market and drawing strong interest

 

Mornington Peninsula commercial real estate is also tightly held onto. 2-4 and 6-8 Henry Wilson Drive in Rosebud is a good example being offered for sale for the first time in 25 years.

Here are some other key listings in the area to date
Mornington Commercial Property News & Real Estate Market Updates

 

Hi @johnmteliza

Are you an agent or have vested interest in the market there?


Ashish

 

Hi Ashish sorry I'm not. I do enjoy researching the coastal/regional markets of Victoria seeming they appear to be the new growth areas

 

Rags to riches on Mornington’s Main St

A buyer has splashed $2.6 million for 69 Main St, which is on 280sq m and currently leased to national retailer Ghanda Clothing.

The vendor had paid $86,460 for it back in 1980, delivering a huge price gain of more than $2.5 million over the period, CoreLogic figures show.

The weekday auction saw the property sail $100,000 above the reserve and drew 3 bidders and 100 onlookers.

 

Hi John,

What sort of rental was it fetching?

Regards

 

@johnmteliza - how much of that was due to capital works, rezoning or other effects?

 

Sorrento strip set to deliver another strong result above $2.5m

The buyers have included prominent Melbourne developers, solicitors, investors based in China and Singapore, and high-net worth Melbourne-based families.

“In recent years we have seen the Mornington Peninsula become a well-recognised retail investment location due to the abundance of high-trading, national retailers present in the area.” He noted the property’s investment fundamentals would attract a wide range of buyers.

 

@johnmteliza - and other forum members,

For what it is worth, this is nothing special and is actually consistent across many Melbourne markets I have been watching. Commercial yields for A class properties are quite low (sub 5%).

Take Mornington Village Shopping Centre for example: it sold in 2014 for approx 24 million for a yield closer to 7.92%. The rents didn't increase substantially but yields dropped considerably.

I looked at buying the Centre back in 2014 major concerns' were the age of the Centre and local council (also lack of funding). All said I am now kicking myself 186% ROI (rent included).

 

Investors splash nearly $40m on Mornington Village shopping centre

Mornington Village Shopping Centre sold for nearly $40m in June 2018.

On the opposite side of the peninsula, Hastings shopping centre was acquired by Henkell Brothers on a 6.2 per cent yield in 2017.

Henkell Bros head for Hastings in $32.1m shopping centre deal

 

Peninsula is booming and features strong commercial property potential for interested investors.

Due to strong population growth local councils have announced their support for expanding industrial and commercial areas, welcoming compatible businesses to the Shire to increase employment opportunities.

An iconic site fronted on Point Nepean Road has received more than 80 expressions of interest since entering the market, an indication of the significant increase in enquiries coming through for Peninsula-based land sites.