A decade ago Melbourne’s inner city retail shops were under threat from the big shopping malls such as Highpoint, Chadstone etc. However with more people relying on transport and bikes due to high petrol prices and the trend for more people wanting to live close to the city we are now finding the shopping strips start to flourish again and people start to ‘look local’.
A report by Savills highlighted the above information as well as the fact that a big supermarket with lots of free parking is still key to drawing people to the many retail strips that exist in Melbourne. Once people are drawn to their weekly shopping at the supermarket, the ‘fringe shops’ that exist close by offering specialty products or services are thriving.
The most expensive shopping strip in Melbourne is Chapel Street, South Yarra. For a 100sm2 shop expect to pay $1300 – $1500 per metre for prime position however as the property gets closer to Windsor Street the rent drops substantially to $500 – $700 per square metre. As of last month Chapel Street had a 5.2% vacancy rate.
The 2nd highest shopping strip in Melbourne is Burke Road which also currently has a lower vacancy rate than Chapel Street of 3.3% and with rents currently averaging $800 – $1200 per square metre.
As these strips become more and more important for people’s shopping and lifestyle habits, so do to does the proximity of residential real estate to these amenities.
Thank you to the Financial Review and Savills for the statistical information provided.