Office in strategic South Melbourne street sells on 2.26 per cent yield.

3-7 Raglan Street, South Melbourne, offers city skyline view security.

A small office in South Melbourne’s strategic Raglan Street has sold for $3.35 million reflecting a land rate of $11,833 per square metre.

The 300 sqm Commercial 1 zoned holding at #3-7 contains a triple-storey building with 780 sqm of lettable area, and six tandem-style car parks.

Buildings on the south side of Raglan Street, like this one, provide city skyline view security over low-rise houses across the road which can’t be replaced with tall buildings.

Last August we reported, exclusively, that the neighbouring office, 9-17 Raglan Street, sold to a China-based investor for $14 million – a 54 per cent uplift on the $9.1 million price the vendor paid in 2016.

Also in 2016, local developer Michael Buxton paid $9.1 million for a four-storey commercial building next door to that one, at 19-25 Raglan Street.

Knight Frank’s Danny Clark, Andrew Hansen and Gellie Mendes picked up the listing of 3-7 Raglan Street last year after the agency sold #9-17.

The $3.35 million sale price reflects a low passing yield of 2.26 per cent. It is selling to private investor.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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