A private Melbourne developer has fought off stiff competition to secure a vacant commercial property, which will be turned into a new residential development.
The 150-square-metre property, 22-24 Bennetts Lane, was sold at auction for $2.3 million — reflecting a land rate of $15,333 per square metre and $25,555 per square metre for the building rate.
The property was sold with vacant possession and is located opposite the renowned Bennetts Land Jazz Club. The 90-square-metre building will be knocked down to make way for a new residential development.
CBRE’s Paul Tzamalis, who along with Josh Rutman and Benson Zhou handled the sales process on behalf of overseas vendors, said the property’s permit approval helped generate strong buyer interest.
“We continue to see strong levels of demand for permit approved sites such as this, with permits virtually irreplaceable under the new planning legislation,” he said.
“Furthermore, laneways continue to ignite strong interest in both the Melbourne and wider Australian market, remaining keenly sought after by investors.”
The sale follows a spate of transactions in the north-eastern pocket of the Melbourne CBD, with the area’s ongoing retail activation prompting strong developer interest in the precinct.
An education operator recently secured a two-storey property at 54-56 La Trobe Street for $8.2 million. Located on a 510-square-metre parcel, this property comprises a building area of 700 square metres and will likely make way for a new mixed-use tower, subject to further planning application.
The Islamic Community also recently secured a 322-square-metre site on Exhibition Street from the Australian Apparel Textile Union for $4.5 million, and Telstra sold its large parcel on the corner of Exhibition and La Trobe Streets for over $100 million.
“Development-ready sites continue to top the list of investors’ preference, with a strong unabated demand for these kinds of assets,” Mr Tzamalis said.