Circular Quay shopfront sets Australia property record for price per sqm on retail asset

A 44sqm shop at 1A Macquarie Street, Sydney, has set a new Australian property record.

The closure of Australia’s international borders has not prevented a Circular Quay gift shop from setting a new national property record.

Located beside the Sydney Opera House and with views of the Harbour Bridge, the 44sqm shopfront sold in a deal worth more than $5m + GST.

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With a floor area of 44sqm, the estimated sale price is equivalent to about $125,000 per sqm once GST is taken into account.

The purchase price is at least $125,000 per sqm including GST.

The insane price is enough for the Lot 3 and Lot 4 1A Macquarie Street, Sydney to clinch the Australian property record for the highest rate paid on a per square metre level for a retail asset.

Ray White Commercial Asian Investment Services agent Andrew Vines was unable to confirm the exact sale price due to settlement having not taken place, but said more than 100 groups showed interest in the property.

“The assets are suitable for all types of retail – subject to council approval – and the eventual buyer was a local private investor with extensive knowledge of the area,” he said.

“They had confidence that the area will soon return to being a booming area with the arrival of the global Wahlburgers by Mark Wahlberg, who will open in the area soon.”

The shop had been leased by the same tenants for 20 years.

The shop had views of Circular Quay and the famous Sydney Harbour Bridge.

Attracting a premium due to its position next to the Sydney Opera House and with an outlook of the Sydney Harbour Bridge, Mr Vines said the purchase was a once-in-a-lifetime opportunity.

“Super prime retail opportunities that have been tightly held are suddenly becoming available (as a result of COVID-19),” he said.

“Landlords who swore they will never sell are genuinely open to cashing up and finding a more secure return on their investment.”

Owned by Hagood Holdings, the two amalgamated retail shops had been leased to the same tenant for 20 years. It featured loading dock access, high double window frontage and had potential for outdoor seating.