Backpackers fetches $2m
DEMAND for commercial property on the Surf Coast continues unabated after a recent sale in Torquay.
Investors, developers and builders are seeking to ride a boom in population growth on the Surf Coast, with the Bells Beach Backpackers site selling for $2.15m to a private investor.
The 1463sq m Surf Coast Highway property achieved a 4.1 per cent yield.
The three-level building with ocean views occupies two prime adjoining development sites at 51-53 Surf Coast Highway.
The property is 50m from Coles and the Torquay Village retail plaza as well as several other Torquay attractions.
Cushman & Wakefield agents Lukas Byrns and Marcus Neill managed the sales campaign on behalf of a local private vendor.
The property sold with a passing income of $90,000 a year until September 2023.
The high-profile main road site carries a flexible general residential zone and offers po
tential for multiple uses, including commercial or residential development.
“Given the huge potential to either improve the existing backpackers accommodation and multiple development opportunities under the commercial or residential zoning, the site was highly sought after,” said Mr Neill, the director for middle markets.
Mr Byrns said there was a wave of capital entering the Surf Coast Shire.
“Demonstrated by the fact that we received 120 inquiries and seven offers for this property
from a range of high networth investors and local and interstate builders and developers,” Mr Byrns said.
“Aside from an expected uplift in intrastate travel once restrictions ease, Torquay has one of the highest population growth rates in Victoria.”
Recent sales in Torquay include the Bunnings Warehouse site for $20m, the car wash site at 48-50 Bell St, Torquay, for $2.2m, and the home of Torquay’s Mitre 10 for $4m.
Last year Torquay’s standalone Woolworths supermarket sold for $25.1m.