The property at 10 – 14 Bennetts Lane was expected to sell for around $1 million, but ended up fetching $2.75 million at auction. Knight Frank selling agents Langton McHarg, and Clinton Baxter said demand by residential developers pushed the price around $1.5 million over its reserve.
The price sets a new record for land values in the Melbourne CBD of around $12,500.
Both Mr McHarg and Mr Baxter declined to elaborate on the buyer, however industry sources at the auction said it was picked up by a local developer, CW Global Investments, which owns the site behind Bennetts Lane, at 17 – 19 Exploration Lane.
In 2003, CW Global Investments shelved plans for The Lane, an 11-storey boutique apartment complex on Exploration Lane, after it couldn’t get enough pre-sales. With the residential sales and leasing market much stronger today than it was four years ago, sources are expecting a bigger residential project, with two street frontages, to now be proposed.
Capital Gain could not contact CW Global Investments for comment.