Property Deep-Dive — 1/306 Station Street, Fairfield VIC 3078

Date: 2026-10-15 · Desk: Eva · Brief: live listing assessment as an investment (≤$700k budget, yield + capital growth) Follows: Richmond & Fairfield corridor study + Shop 5/387 Station St Thornbury (both 2026-10-15)

🎯 Headline: the best-structured deal of the three — price it and check the rent

1/306 Station Street, Fairfield — a 60 m² strata retail shop, leased to Subway (national brand) on a lease through to 2028 with further options. Listed $650,000–$700,000 by Biggin & Scott Inner North, first listed 8 Oct 2026 (3 days on market at time of research). No inspections currently scheduled — arrange via agent.

This is the cleanest structure of everything assessed so far: national-brand tenant, contracted term with options, prominent Station Street position, inside the budget ceiling. The entire assessment now reduces to one missing number — the passing rent — which the listing does not state.

1. The specific property

Positioning in the building: 306 Station Street is a 10-lot apartment building (per Roost data) — the retail lots sit at street level under residential above. Building medians: $790,000 estimated value, $865/wk rent, 5.69% gross yield (modelled, Jan 2026 — guide only). Note this building-level figure blends residential and retail; treat as context, not as this shop's number.

History flag: the same address shows a sold record in April 2026 (price undisclosed). If this is the same lot re-listed six months later, ask the agent directly why — change of circumstance, flip attempt, or tenant development. A six-month hold-and-relist on a tenanted shop deserves one straight question, not suspicion, but it needs asking.

2. Yield maths — the rent decides everything

The listing states the lease but not the passing rent. Work the bands:

Benchmarks to test the actual rent against:

• Richmond strip leases observed: $226–$400/m² (246B Victoria St $226 · 1/32 Bendigo St $331 · 204 Bridge Rd $400)
• High Street Thornbury comparable: 735 High St, 269 m² at $60,000 pa ≈ $223/m²
• Fairfield strip reference: ~$70,000 pa advertised on a long-lease Station Street property
• A 60 m² Subway at typical inner-north strip rents ($250–$350/m²) implies $15,000–$21,000 pa — which at $675k is only 2.2–3.1% gross

Be blunt about it: if the passing rent is ~$20k pa, this is a ~3% yield at guide — worse than every unit alternative in the corridor studies (4.2–5.5%) — and you are paying $650–700k for tenant quality and position, not income. If the rent is $35k+ pa, it clears 5% and this becomes the strongest of the three deals assessed. Do not bid before the agent states the passing rent in writing.

3. Tenant quality — the genuine edge here

Subway is a national franchise brand on a contracted term to 2028 with options. Compare against the other two assessments:

A national-brand QSR tenant on a Station Street corner of an established retail precinct is the tenant profile the corridor study said to demand. Vacancy risk during the hold is structurally lower than any alternative assessed so far.

Verify: franchisee vs corporate lease obligations (who guarantees — the franchisee entity, a personal guarantee, or Subway corporate?), outgoings responsibility (net vs gross lease), rent review mechanism and frequency, and the exact option terms (length, market review or fixed uplift).

4. Fairfield Station Street context

• Functioning strip: train station 0.29km, established retail/commercial precinct, strong residential catchment (Fairfield 56% owner-occupier, professionals 31–40)
• No documented vacancy crisis on this strip (unlike Bridge Rd 18% / Victoria St 22.4%)
• Recent Station Street evidence: 10/47 Station St sold $270,000 (off-market, 23 Feb 2026) · 3/306 Station St SOLD (Miles Real Estate — "affordable asset on Station Street") · 204/62-64 Station St sold $595,000 (14 Mar 2026) · 122 Station St sold Nov 2025 · 106 Station St prime freehold sold (vacant possession)
• Fairfield medians: house $1.65–1.71M · unit $492k (5.01% gross) · suburb rent $825/wk houses (+7% YoY) · 108 sales in 12 months · 51 days on market houses / 28 units

5. Tax & cost overlay (unchanged from corridor study)

• VIC land tax threshold $50,000 site value — a strata shop's site value will exceed this; land tax applies
• CIPT — annual commercial property tax from 1 July 2024. Confirm this property's CIPT status before buying
• Strata shop = owners-corporation fees + council rates + land tax on a 60 m² lot — request the OC schedule and s32 vendor statement
• From 1 July 2026, new AML/CTF requirements apply when buying/selling property — have ID and source-of-funds documentation ready; conveyancer handles the reporting

6. 🎯 Eva's Read

Verdict: the most buyable structure assessed — but the price only works if the rent clears 5%.

The case for:

• National-brand tenant, contracted term + options — the strongest covenant of the three deals
• Inside the $700k ceiling, fresh listing (8 Oct), prominent Station Street position in a functioning strip with no vacancy crisis
• Set-and-forget profile the listing claims is genuinely what a contracted QSR lease delivers — if the rent is right

The case against:

• No passing rent stated. At typical inner-north strip rents the implied yield may be ~3% — worse than a unit, on an illiquid strata asset
• 60 m² is small — re-letting risk concentrates on finding the next food/retail tenant for a small box if Subway ever leaves
• April 2026 sold record at the same address needs explaining
• Strata retail means OC + land tax + CIPT on a small income base

What I'd do — in order:

1. Ask Biggin & Scott for the passing rent in writing (current lease schedule, not a marketing figure)
2. Ask why the April 2026 sale re-listed — one direct question
3. Get the lease: guarantor (franchisee vs corporate), outgoings (net/gross), reviews, option terms
4. Get the s32: OC fees, site value (for land tax modelling), CIPT status
5. Bid only if net yield after land tax + CIPT + OC clears your hurdle — at $675k guide, that means passing rent ≥ ~$35k pa for 5% gross

Compared across the three: Subway Fairfield > Thornbury Shop 5 (rent too thin) > Bridge Rd/Victoria St (avoid). This is the first one where I'd pick up the phone — but the phone call is to get the rent figure, not to make an offer.

Sources

1. Realty.com.au — 1/306 Station Street Fairfield, $650,000–$700,000, Subway lease to 2028 + options, Biggin & Scott Inner North, listed 8 Oct 2026: https://www.realty.com.au/buy/1306-station-street-fairfield-vic-3078-6590857
2. Roost — 306 Station Street Fairfield building profile (10 lots, $790k median est. value, $865/wk, 5.69% modelled yield): https://roost.com.au/building/306-station-street-fairfield-vic-3078/
3. Aussie Homes — 1/306 Station Street Fairfield property profile (sold Apr 2026, suburb stats): https://www.aussie.com.au/property/vic/fairfield-3078/1-306-station-street/
4. Nelson Alexander — 10/47 Station Street Fairfield sold $270,000 off-market (23 Feb 2026): https://www.nelsonalexander.com.au/property/1871671/1047-station-street-fairfield-vic-3078/
5. OnTheHouse — 101/62-64 Station Street Fairfield sold $555,000 (24 Jun 2026): https://www.onthehouse.com.au/property/vic/fairfield-3078/101-62--64-station-st-fairfield-vic-3078-19825887
6. Property Price History — 204/62-64 Station Street Fairfield sold $595,000 (14 Mar 2026): https://propertypricehistory.com/sold-price/VIC/372098988/204_62_64_Station_Street_Fairfield_VIC/
7. Miles Real Estate — 3/306 Station Street Fairfield SOLD: https://www.milesre.com.au/property-details-3-306-station-street-fairfield/885579
8. Commercial Real Estate — 122 Station Street Fairfield sold (20 Nov 2025): https://www.commercialrealestate.com.au/property/122-station-street-fairfield-vic-3078-2020353568
9. Premium REA — Victorian land tax rates & thresholds 2026: https://premiumrea.com.au/guides/land-tax-victoria
10. State Revenue Office VIC — Commercial and Industrial Property Tax: https://www.sro.vic.gov.au/businesses-and-organisations/commercial-and-industrial-property-tax