Local developer pays record $6.3 million for Hampton site

A string of shops in popular Melbourne bayside suburb Hampton will make way for a multi-storey apartment and retail complex, after a developer paid a record price for the site.

The site at 427 Hampton St came with a permit for 44 units, with the final sale price equating to a record rate of $143,295 per unit.

The 1242sqm block of land attracted more than 150 enquiries before auction, with eight expressions of interest for the property, which is set to house 41 apartments and three shops.

Savills’ Nick Peden, Jesse Radisich and Julian Heatherich sold the site, with Radisich saying its pre-existing permit made it a simple equation for potential buyers.

“The property had all the essential elements for a successful residential development with a very generous site and a prime retail street frontage in one of Melbourne’s most sought after bayside suburbs and with a permit in place,” Radisich says.

The Hampton St site was originally home to group of shops.

Peden says a neighbouring 62-apartment development sold out within weeks, which would have factored into the thinking of prospective purchasers.

“The demand for apartments along this increasingly popular strip of bayside suburbs, which includes Brighton and Sandringham, has been extraordinary but not surprising given its relatively close proximity to Melbourne CBD and the exceptional lifestyle attributes,’’ he says.

The site was expected to sell for around $5.5 million but the intense interest, including from overseas investors, saw the price soar.