"The Mornington Peninsula serves as one of the focal points for Melbourne’s satellite suburb development extravaganza."
As Ready Media Group have explored recently, the Mornington Peninsula’s tumultuous last two years have given way to an upsurge in developer and investor interest as of late. Stonebridge Property Group have been witnessing this firsthand, having transacted a number of key sites in recent years.
Many of these recent sales have been for well-tenanted commercial properties that have offered worthwhile holding income for investors. Notably, they helped divest 172-174 Ocean Beach Road in Sorrento for $6.7 million on a 2.4 per cent yield, as well as 100 & 102 Mount Eliza Way, Mount Eliza for $6.4 million on a 3.51 per cent yield: the former is a triple-fronted retail investment, tenanted by the highly successful Buckley Café; the latter a commanding double-fronted commercial property, anchored by Bendigo Bank and Village Gourmet Meats.
301-303 Main Street, Mornington VIC 3931
Conversely, their latest sale provided prospective buyers an opportunity for development on a significant corner site within a Commercial 1 zone, situated amongst Mornington’s most prominent medical precinct. 301-303 Main Street was sold on Wednesday, 7th of September, for a sales figure of $3.25 million. For a land rate of $2.415 per sqm, the net yield for the site rested at a sharp 1.9 per cent.
“Despite rising construction costs and interest rates, including the recent 50-basis point increase last Tuesday, the result in Mornington proved that buyers still have a strong level of appetite for the Mornington Peninsula and quality commercial opportunities,” stated Stonebridge’s Jacob Biviano, who marketed the property alongside his colleagues, Rorey James and Chao Zhang.
Recent developments in the area like RCA Village’s Martha Bay retirement community, 943 Nepean Highway, and a planned redevelopment of Main Street’s Alexandra Park to construct a medical centre on the premises, demonstrate both the hunger of the local government and developers alike for more quality commercial property on Main Street and the adjoining roads.
Alexandra Park has had development proposals submitted for the construction of a medical centre
“The campaign received strong engagement from developers, medical groups and owner occupiers throughout the 5-week process,” explained Mr. Biviano. “[Ultimately], a Melbourne-based developer eventually outbid a local buyer to secure the asset.”
The commercial interest in the area seems motivated by the Peninsula’s rising cost of living. According to District Data, since 2011, the median sales price for a house in Mornington has increased from $500,000 to $1.151 million, with similar growth having been witnessed in land sales. As demand for residential property continues to skyrocket, a corresponding rise in the development of quality amenities has followed.
As capital continues to flow towards the south-east of Melbourne, the Mornington Peninsula serves as one of the focal points for Melbourne’s satellite suburb development extravaganza, and Stonebridge Property Group is working on the ground to help facilitate the growth.
