A SKINNY three-storey commercial property leased to several businesses in the heart of Box Hill’s retail precinct has sold $1 million beyond reserve.
The $8.8 million result for 27 Market St, which sits on a compact 144sq m, with 367sq m of floor space, stunned a large crowd at the midday auction on October 4.
It last sold for $3.5 million in 2012, with the recent sale marking a gain of $5.3 million in six years at more than $880,000 a year.
RELATED: Work begins on 29-storey tower
Developers circle Box Hill church site
The large crowd at the mall for the auction.
Six bidders were among the auction crowd.
The property, which has Commercial 1 zoning and is in a tightly held area, had a price guide of $7-$7.7 million.
“Most buyers thought $7.5 million was unrealistic, but we had four bidders even after the property was announced on the market at $7.8 million,” CBRE listing agent Jimmy Tat said.
He described the site as “well located in a strong retail precinct”.
The buyer was a Hong Kong developer with their first commercial purchase in Australia.
“They have been in the market for a year and when they saw the Box Hill location, they simply had to buy it,” Mr Tat said.
“The campaign ran strongly with local and Asian groups expressing interest.”
The precinct is being transformed with high-rise apartment and office projects.
A crowd of 300 turned up at the mall to see six bidders compete. The auction rose with $500,000 increments from the $5.5 million opening bid.
From $7 million, increments still rose strongly with bids of $250,000. Two bidders remained till a final $33,000 rise gave the foreign buyer the keys to the property.
As an indication of the strength of commercial properties in that part of Box Hill, the result is equivalent to $61,111 per square metre.
“This is double the $30,000 per square metre some prime sites in the Melbourne CBD have fetched recently,” Mr Tat said.
The property is steps to a shopping centre with a market and cafes.
He noted that a shoplot at 349 Elizabeth St in the city centre recently netted $6.81 million — around $30,000 per square metre.
The Market St site is just steps from Box Hill Central shopping centre, train station and several new apartment and office blocks.
The property is leased to four tenants and has an annual income of $277,347.