Savills News

Get it while it’s hot. Home of Sydney’s best Coffee up for auction

Great coffee is something that has quickly become part of Australia’s cultural identity –with the notion of simply ‘going to get a coffee’ being deeply embedded into the Australian way of life.

According to research from the Australian Bureau of Statistics, the Australian Coffee Consumption market is forecasted to grow 5% during 2019-2024. The growth and sophistication of the Australian coffee market is also evident by its willingness to pay more for quality products, with 84% of the population spending money on coffee in an average week.

According to recent data, 75% of Australians have at least one coffee per day, and of those, 28% have more than 3 cups per day.

According to Nick Lower, Director, Metropolitan & Regional Sales, NSW at Savills Australia, the Australian coffee market and Sydney in particular has the presence of several single store independent coffee shops, who tend to differentiate themselves based on the quality of their coffee ordered.

“It’s interesting to note that Sydney-siders start their day earlier than those in Melbourne – 8am compared to 9.30am is the peak consumption time in Sydney and coffee shops are opening earlier to meet the ever increasing demand for coffee supply in an exponentially expanding economy”.

Research shows that Australia’s vibrant coffee culture has awoken industry revenue, which is expected to grow at an annualised 2.5% over the five years through 2019 – 202 to AU$10* billion.

Not only is it about the quality of your products, but just like with any good property investment, it’s all about Location, Location, Location!

Continual pedestrian foot traffic is just one ingredient for the recipe of success for any good coffee shop, as well as being close to public transport and retail precincts, strong street signage and great customer service.

One such brand making waves is Normcore Coffee, located at Lot 1, 37 York Street, in the heart of the Sydney CBD. This 14sq m ground floor coffee shop is a Sydney based coffee roasting company, and shop 1 represents one of the three shops they own and operate.

Strategically located on the door step of Wynyard Station (30m* away) the property is for sale via an on-site auction through Nick Lower and Selin Ince of Savills Australia. Normcore Coffee have just signed a new five year lease and the site is exposed to 200+ pedestrians daily, is surrounded by major retailers, office buildings and all forms of public transport.

Mr Lower said offshore interest in the property has been off the charts, with strong interest from Vietnamese, Indonesian, Korean, Singaporean and Malaysian buyers who are looking for a safe haven investment with a strong return.

“With only a small number of offerings being made available in the Core of the Sydney CBD, the undersupply of opportunity has led to an increase in demand from investors – looking for blue chip, safe holdings.

“No matter what happens in the economy, or even in life, everyone who drinks it, needs their daily coffee fix to jump start their morning, and the hundreds of people walking past 37 York Street certainly enjoy what Normcore has to offer.

“Within the first week alone, our team has experienced record numbers of enquiries with a 27% increase in first week numbers,” he said.

Lot 1, 37 York Street Sydney is for sale via an on-site auction outside Normcore Coffee on Friday 30 August 2019 at 12pm through Savills Australia.

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