Developers have splashed $12m on a rare Prahran corner block in a secret off-market deal, as Melbourne’s inner-south land squeeze intensifies.
Melbourne developers have snapped up a rare $12m Prahran site as demand for large-scale inner-city land intensifies and supply continues to tighten.
The 476-478 High St site spans 1206sq m and has more than 98 metres of triple street frontage, making it one of the final large-scale development opportunities in the tightly held City of Stonnington.
The property is now leased to Woolworths-backed Petstock, but is expected to make way for a high-end residential or mixed-use project as developers turn their attention back to blue-chip inner suburbs.
RELATED: This Melbourne site could make you $358k a year
Toorak Village shop sells $4.55m on 1.5 per cent yield
Adrian Portelli teases second LMCT+ station
Little Projects secured the site, with the deal highlighting the growing fight for scarce infill land in some of Melbourne’s most established lifestyle pockets.
The property generates about $217,350 a year in net income, with a passing yield of about 2.16 per cent, showing its value is more heavily tied to its future development potential than its current rental return.
The 476-478 High St Prahran site spans 1206sq m with more than 98 metres of triple street frontage, making it one of the last large development parcels in the City of Stonnington.
Colliers director Ben Baines said sites of this scale were becoming harder to find.
“Large, well-fronted sites in proven inner-city markets are becoming increasingly difficult to secure,” Mr Baines said.
“This acquisition is a strong example of that ongoing supply constraint.”
Little Projects director Leighton Pyke said the site would allow the group to deliver a premium project aligned with its design-led approach.
“Prahran is a highly sought-after location, underpinned by exceptional amenity, connectivity and lifestyle, and opportunities of this scale are increasingly rare,” Mr Pyke said.
Demand for new apartments in Melbourne’s inner suburbs is driving developers back to blue-chip areas as buyers chase lifestyle locations close to the CBD. Picture: Jesse Thompson/Getty Images
CBRE senior director Darren Beehag said strong buyer interest showed developers were still ready to move quickly for the right site.
“When assets of this quality are offered, the market responds decisively, and that was exactly the case here,” Mr Beehag said.
The site is positioned near High St retail, public transport, parklands and leading schools, with nearby suburbs including Toorak, Hawksburn and South Yarra adding to its long-term appeal.
Developers are facing a shrinking pipeline of major sites across Melbourne, with planning constraints and limited land supply fuelling competition for inner-city opportunities. Picture: NewsWire/ David Crosling
The sale comes as developers increasingly chase rare inner-city landholdings, with greenfield opportunities shrinking and planning constraints tightening across Melbourne.
Industry figures say the scramble for blue-chip development sites is intensifying, with well-located land parcels becoming harder to secure and competition pushing buyers to move quickly when opportunities emerge.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
‘Inevitable’: Grim housing crisis warning for Victorians
david.bonaddio@news.com.au
English (US) · 