PRAHRAN SITE SNAPPED UP FOR $10M

SP SETIA has bolstered its assault on Melbourne, after scooping a permitted development site in Prahran for $10 million.

It's the Malaysian developer's fourth land purchase in the state, with plans to construct a high end residential project valued at $38 million on the site.

The 850sqm site at 103-105 High Street generated strong interest among local and offshore developers at auction.

Located close to Chapel Street, Greville Street and Prahran train station, the site has a permit for a seven levels of apartments, ground floor retail, office space floor and 63 car spaces.

Colliers International agents Trent Hobart, Hamish Burgess and Ben Baines facilitated the sale.

"Opportunities are becoming fewer and fewer in this sought after area, particularly opportunities that come with a permit of this calibre," Burgess says.

"Not surprisingly, this auction was hotly contested, with numerous bidders and a 150-plus strong crowd."

The property was sold on a land rate of $11,765 per square metre and a unit rate of $212,766.

The site was sold for $6.2 million just 16 months ago, becoming the first sale in excess of $10,000/sqm within the City of Stonnington.

"Established offshore entrants in the Melbourne market are now looking to recycle funds from their initial projects creating another wave of aggressive bidding for well located, blue chip, permitted development sites," Burgess says.

Hobart says the location of the site will make it an attractive opportunity for owner occupiers, with the scheme by architects ROTHELOWMAN capitalising on the potential for CBD views.

"This site is situated in a highly sought after city fringe location, with Prahran having experienced tremendous growth of almost 24 per cent in median house prices over the past 12 months," Hobart says.

"In proximity to all the best of Melbourne's restaurants, retail and public transport amenity, this site is perfect for a boutique, high end residential and part mixed use development targeted towards the owner occupier market.

"Opportunities like this are very rare at the moment. The reason for this is that the market to sell the end product is so good that the land owners have low incentive to sell their sites.

"In light of this we are not surprised by the high levels of interest that were generated."