Small South Yarra site zoned for big building sells for $456,000

A 47 square metre garage covers the site, wedged between a car park and the Chiara and Lucia apartment buildings. The notorious Salt nightclub was in this vicinity.

A unique development site in South Yarra sold following a competitive auction last week.

The c47 square metre parcel known as Lot 653 of 11-17 Daly Street traded for $456,000.

A garage, built more than 20 years ago as part of the adjoining car park, and most recently occupied as a car detailing workshop, occupies the plot.

In the suburb’s uber-dense Forrest Hill precinct, the Capital City zoned site has the potential to make way for an eight-storey extension.

The garage neighbours the near-new Chiara and Lucia apartment towers, and the historic red-brick power station which was fitted out nine years ago for high-end boutique Le Louvre when it which relocated from 74 Collins Street after more than 50 years.

Larry Kestelman’s Capitol Grand, which at 50-storeys will be the suburb’s tallest building, is in the immediate vicinity.

The garage (right) was built in the 1990s as part of the neighbouring multi-level car park (centre).

Last month, we reported that Goldfields Group plans to start building a 24-level office (artist’s impression below, right) next door to Capitol Grand.

Ryan Milivojac and Charles Cini of CVA marketed Lot 653, 11-17 Daly Street.

At auction, the property was contested by three bidders.

The sale price values each square metre of land at $9702.

“We were really happy with the turnout overall,” Mr Milivojac said, adding there was a wide variety of prospective buyers – investors, owner-occupiers and developers.

Goldfield Group’s proposed 24-storey tower will contain 24,000 sqm of office area.

“The property was purchased by a local investor who intends to search for a tenant immediately,” Mr Milivojac said.

“No call has been made as to whether the property will be refurbished or remain as it is,” the broker added.

The site could make way for an office, shop, restaurant or store room.

Mr Milivojac said it could earn annual rent of between $22,000 and $23,000 following a commercial fit-out.

Bradley Willmott, a valuer, buyer advocate and director of Pursuit Property Advisory, said the Daly Street site is believed to be the smallest ground level parcel of land left in Forrest Hill.

“The site is also very close to EcoWorld’s Yarra One development, which will complete construction at that end of Daly Street and bring in more pedestrians via ground floor activations,” Mr Willmott said.

These include a covered public plaza connecting Claremont Street to Daly Street, which will feature greenery and a three-level co-working space, he added.

South Yarra is about 3.5 kilometres south-east of the CBD, serviced by amenity including retail strips in Toorak Road and Chapel Street.

“The site is also within walking distance of major attractions such as the MCG, AAMI Park, Rod Laver Arena, The Jam Factory and the Royal Botanic Gardens,” the brokers said.

South Yarra train station is about 400 metres away.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco