Granville Service Station Sells for $9.5 Million

A prominent service station and commercial property in Granville has sold for $9.5 million, highlighting continued investor demand for well-located assets offering dependable income.

The 27–33 Woodville Road property occupies about 3,553sqm and includes an established Budget Petrol service station together with a two-level warehouse and office building. The fully leased asset generates net income of around $336,465 a year.

The transaction reflected a yield of 3.54%, which selling agent CBRE described as an Australian record for a service-station asset in 2026. The campaign attracted interest from local, interstate and international buyers, reinforcing the appeal of essential-service retail property.

A key attraction was the site’s position near major arterial roads including the M4 Motorway, together with multiple street frontages and future flexibility. Investors increasingly value assets that combine current income with longer-term redevelopment or repositioning potential.

For investors considering Melbourne’s western growth corridor, the broader lesson is that commercial property performance can remain strong even when residential markets are softer.

Service stations, convenience retail, medical properties and other essential-service assets can offer relatively defensive income where they are supported by strong tenants, strategic locations and secure leases.

However, investors still need to assess lease terms, tenant strength, environmental risks, financing costs and future capital expenditure before focusing on headline yields.

Overall, the Granville sale shows that quality income-producing commercial assets continue to attract significant capital. In Melbourne’s west, similarly well-located properties with stable cash flow and long-term demand may remain attractive to investors seeking diversification beyond residential property.