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