Maroondah Village sells for fourth time in a decade
The Maroondah Village shopping centre has smashed the Croydon North property price record it set just three years ago.
And the proponents behind the eye-watering $18.8 million deal believe the suburb’s increasingly affluent demographics and soaring house prices helped win buyers over.
A total of 11 local and international investors pursued 401-415 Maroondah Highway, Croydon North, but it was a private buyer from Melbourne that offered top dollar.
Commercial Insights: Subscribe to receive the latest news and updates
The sale to a private investor was handled by CBRE, and marks the fourth time in a decade the shopping centre has changed hands, with sales in 2009, 2012 and 2015.
Despite the turnover, CoreLogic records show the shopping centre remains the priciest property ever sold in Croydon North, with the price jumping $3.5 million since it last sold for $13.3 million three years ago — also at the hands of CBRE.
The shopping centre’s seller purchased a number of neighbouring properties in the interim, bringing the site to 9707sqm.
CBRE retail investments director Justin Dowers says the result reflects the building’s long-term development options, but also a local property market that has surged with a rising number of affluent families keen to move to the outer suburb.
The property’s zoning could allow further development — with scope for apartments, or even a hotel in the long term
“A more affluent demographic likes being out in this area,” Dowers says.
“There’s always been an attraction to the east and what it offers, and that’s been enhanced by the Yarra Valley becoming more and more popular.”
The suburb’s $860,000 median house price has certainly surged in line with this, up $265,000 or 44.5%, since 2015, according to latest CoreLogic records.
“From an investor point of view, they can see that consistent growth in house prices,” Dowers says.
“It has given them confidence there’s always going to be growing demand for accommodation, whether that be for residential apartments, serviced apartments or a hotel.”
Maroondah Village is securely leased with 11 tenants, including Coles, paying a combined $850,000 a year in rent, with 113 carparks on the site.
This would rule out any immediate development at the site, he added.
The $18.8 million sale reflected a 4.6% yield against the purchase price.
However, the property’s zoning could allow further development — with scope for apartments, or even a hotel in the long term, according to Dowers.
In neighbouring Croydon, the Civic Square Shopping Centre sold for $30.51 million in 2015.
This article from Leader Newspapers first appeared as “Maroondah Village sale sets Croydon North property record”.
