Prices Reflect Value Of New Look
Sydney Morning Herald
Saturday April 26, 2003
The reopening of the former Albury Hotel front bar as the new home for Puma marks a sea change for the Oxford Street retail strip. The days of drag queens and less than salubrious bars are giving way to a new era of trendy cafes and retail outlets.
This shift in focus and demographics has flowed through to improved sales for property owners, as evidenced by the higher sales prices.
Last week a long-term Vietnamese restaurant, Kim's, was sold to a private investor for $1.3 million on a walk-in walk-out basis. The buyer intends to secure a tenant to carry on running the existing business. Established in 1977, Kim's is right in the hub of Darlinghurst's renowned restaurant strip on Oxford Street.
Selling agent Gregory May, of Laing+Simmons Commercial, said: ``Private investor interest remains extremely active in this prestigious market, with good quality, well-located property in hot demand".
Another agent along the strip, Allan Levy of Metro Commercial is selling 244 Oxford Street, Paddington. It is a three-level retail freehold investment.
``Investors see security and strong capital growth with freeholds like 244 in such high-profile locations, with an abundance of tenants eager to secure an Oxford Street, Paddington, retail location," he said.
Ben Vaughan, retail manager for CB Richard Ellis, said of the new-look and revamped Oxford Street that there was no point of difference to being in a shopping centre than on the strip.
``People will spend a whole day on the strip, starting with breakfast followed by shopping, lunch, then purchase that item for the night out. With the plans that are in at council at present, the strip will be an even bigger destination than it already is, offering department-store size retail outlets, and outdoor dining experiences never seen in the Paddington precinct before," Vaughan said.
``Oxford Street was historically in two sections, the Barcom Avenue-to-Glenmore Road end and the Paddington Markets end. The Barcom Avenue end has really benefited by Puma and Sportsgirl establishing themselves there. Also the two ends are joining up with infill development. The transformation of the Paddington Green into shops will reinforce the joining up of the two ends," Vaughan said.
Theo Onisforou, co-proprietor of leading fashion brand Diesel in Australia, which is opening its first Australian flagship store this year says: ``We are opening only one Sydney store in the foreseeable future. That store is in Oxford Street because Oxford Street is the most significant fashion `retail statement' location in Australia. Simply being there is an important part of our overall national branding strategy.
``Local, interstate and overseas tourists visit the Oxford Street strip and consequently the strip's catchment area is unlimited. Tourists generally do not want to visit a suburban shopping centre, but they will visit Oxford Street.
``Strip shopping has made a resurgence in the last decade," Onisforou said. ``Streets like Oxford Street, Paddington, King Street in Newtown, Campbell Parade at Bondi Beach and the Corso at Manly have the benefit of also having tourist traffic. These streets benefit by having local, interstate and international tourists adding to their catchment market.
``As a consequence of the increase of Sydney land values, people are finding themselves in smaller and smaller accommodation. Home units are getting smaller and backyards are getting smaller. For some people the only real backyard they have to escape to is their local retail strip.
``Retail strips provide cafe lifestyle, people watching and shopping as entertainment. Shopping centres do not provide this outdoor feeling," Onisforou said..
Bernard McGrath, of Laing and Simmons Paddington, said: ``A survey by us indicates that at this stage only one existing retailer is going to abandon his retail outlet in favour of Westfield Bondi Junction. Some of the retailers will open additional outlets in Bondi Junction but will maintain their Oxford Street outlet."
© 2003 Sydney Morning Herald
