Sydney city fringe shoptops, tenants and investors

When we talk about shoptops, we refer to those buildings that combine commercial spaces at street level with residential units above. These mixed-use properties are always popular as investments or residences and for good reason, particularly regarding investment potential.

Shoptops history

Shoptops have a long and storied history in Sydney. Similar to the famous shophouses of Singapore, from the 19th century onwards in Sydney, shoptops have provided a practical solution to urban living, allowing business owners to reside above their shops. This design was particularly prevalent along major thoroughfares like Parramatta Road, a vital commercial artery connecting Sydney to the west. Many of these older buildings with their Victorian-era façades and intricate detailing still stand today, bearing witness to the city’s rich architectural heritage.

Shoptop investment advantages

• Dual income stream: A key advantage is the potential for two distinct income sources. The commercial space provides rental income from businesses, while the residential units generate income from tenants. This diversification can enhance financial stability and reduce risk. If one income stream experiences a downturn, the other can help offset losses.
• High demand: Sydney’s dense urban environment and strong demand for both commercial and residential spaces make shoptops attractive. They cater to those seeking convenient living arrangements, with amenities and services readily available.
• Urban renewal: Councils are encouraging mixed-use developments to revitalise urban areas. This can lead to increased property values and investment returns.

Who wants shoptops in the Sydney city fringe?

Shoptops in Sydney’s city fringe suburbs attract a diverse range of investors and tenants, driven by the unique blend of commercial and residential opportunities. Investor types include small to medium-sized Investors who are drawn to the security of a dual income stream and the potential for long-term capital growth. Developers who can purchase two or more shoptops in a row see the potential for renovation or adaptive reuse, taking advantage of local zoning. Self-managed super funds often seek diversified investments, and shoptops can offer a blend of commercial and residential returns.

Shoptops attract a wide variety of tenants. Small businesses, such as cafés, boutiques service providers like hairdressers and dry cleaners, and medical professionals such as doctors, physiotherapists and dentists find shoptops ideal for their street-level presence and the opportunity to expand to an upper floor.

Creative professionals and freelancers, from architects and advertising agencies to graphic designers, are attracted to the vibrant atmosphere of these locations and the opportunity to live where they work.

For example, in suburbs like Glebe and Camperdown, shoptops are popular not only with retailers but also with medical professionals who use both the ground and upper floor. In Balmain, shoptops are more often rented to both a commercial operator and a tenant.

Residential tenants typically include young professionals, couples and individuals seeking urban convenience and proximity to amenities. The appeal of living above shops, with easy access to services and a lively atmosphere, is a major draw.

Where to find shoptops in the Sydney city fringe

You will find examples of shoptops in most older Sydney city fringe areas. Parramatta Road is a prime example, where ongoing redevelopment projects are integrating new shoptop buildings into the existing streetscape. In suburbs like Glebe, Surry Hills and Balmain, the village atmosphere is enhanced by the prevalence of shoptops, creating a lively and convenient environment.

Suburb shoptops spotlight: Balmain

Balmain, a historic inner-west suburb of Sydney, showcases a charming and established presence of shoptops. Balmain retains a strong village feel, with Darling Street serving as its vibrant commercial hub. Shoptops line this street, contributing to the area’s unique character. The combination of boutique shops, cafes and restaurants at street level with residential units above creates a lively and convenient environment. Most shoptops in Balmain are housed in beautifully preserved Victorian-era buildings, adding to the suburb’s heritage appeal. This historical architecture adds to the appeal of the area, and makes it a desirable place to live.

Balmain’s proximity to the Sydney CBD, coupled with its waterfront location and strong community spirit, makes it a highly sought-after residential area.
The demand for both commercial and residential spaces in Balmain fuels the continued relevance of shoptops. These premises-plus-residential buildings in Balmain help to create a strong community feeling with shop owners often living above their businesses.
In Balmain, shoptops are not just buildings; they are integral to the suburb’s identity, reflecting its history, community, and desirable lifestyle.

The appeal of shoptops lies in their versatility, attracting those who value a dynamic urban lifestyle and a blend of commercial and residential opportunities.

Let us help you with your commercial property

As dedicated local commercial real estate agents, we can help you extract more value from your commercial property. Please get in touch to discuss your circumstances and assets so we can give you personalised advice. Whether it’s commercial leasing, management or sales, we’re here to help you with your Sydney-based commercial property.

Contact us at Ray White Commercial Sydney City Fringe