The transaction represented a land rate of more than $10,000 per square metre with a building rate in excess of $13,000 per sqm.
Mr Minty commented: “Unprecedented tenant demand, low vacancy rates, rising rents and yield compression are collectively creating the emergence of new office markets in and around Melbourne’s CBD.
“The rapid popularity of commercial 2 zone sites in 2017 surpassed expectations, with land rates for traditionally light industrial uses now attracting premiums which are almost rivalling that of zoned sites suited for residential development.”
Mr Mufale said South Melbourne was one of several suburbs growing in popularity.
“Suburbs such as Richmond, Collingwood, Cremorne, Abbotsford and South Melbourne are fast becoming hot spots, popular with both local and offshore developers for the delivery of new office developments.”
The site is located nearby 81-109 Moray Street in South Melbourne, which the Deague family acquired recently for more than $24,650,000. A seven level commercial office building with 15,000sqm of NLA has been proposed for the site.
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