Prestigious South Yarra Development Site Sold and Settled via Competitive EOI Campaign

A prestigious South Yarra development site has sold and settled in a $6.1 million deal, as demand remains in the market for high-end product and sought-after locations.

Fitzroys’ Lewis Waddell, Ben Liu and David Bourke sold 1-17 Adams Street, South Yarra to a local high-end residential developer.

The sale price showed a strong land rate of circa $8,000/sqm after Fitzroys’ campaign generated more than 100 enquiries.

Offered with vacant possession, the 774sqm General Residential-zoned site is currently improved by 2 aged brick apartment blocks.

“The market recognised the prestigious location and corner aspect of the site, close to the amenity of Toorak Road, South Yarra and the Domain precinct, as well as the new Anzac Metro station, and Fawkner Park,” Waddell said.

“The purchaser will assess their options for the site - they’re currently looking at apartment and townhouse schemes.

“High-end development product and premium locations are still stacking up for developers despite headwinds.

“There is huge appeal in the rare nature of development sites within proximity to Domain Road and the Botanic Gardens.”

Liu said interest also came from value-add buyers looking to improve the existing apartments and hold the property as an investment.

He said the campaign and the sale showed the confidence from the market in the prospects of well-located commercial real estate opportunities in Melbourne.

“Momentum has been building throughout 2025 across a range of asset classes - we’re seeing more depth of enquiry and more competitive tension in campaigns, and deals are being done,” he said.

Flagship Freehold in Commanding Lygon Location

The longstanding Lygon Street home of ASX-listed Premier Investments’ sleepwear label Peter Alexander is headed to auction later this month.

Fitzroys’ Shane Mills, David Bourke and Ben Liu have been appointed to sell 271-273 Lygon Street, Carlton with the auction set for Wednesday, 29 October at 1pm.

Expectations are in the early $2 millions.

The impressive 319sqm double-storey building features high clearance ceilings across both levels, and 2 rear doors accessible via Lygon Lane providing an opportunity to split the building into 2 tenancies.
It is offered with a short-term lease to long-standing international tenant Peter Alexander.

“This is an incredible chance to secure a piece of a high-performing part of Lygon Street, just metres from the Faraday Street intersection, and with plenty of upside,” Mills said.

“Investors, owner-occupiers and value-add buyers are all likely to show interest.
"It’s one of the few buildings near the Faraday Street intersection with more than 300sqm of building area.”

He said there is the opportunity for rental reversion with the upcoming expiry of Peter Alexander’s lease, while the building’s potential to be split into 2 tenancies also offered rental upside.

“Owner-occupiers have a chance to secure their own flagship in a key part of one of Melbourne’s most famous lifestyle strips. They also have the option to part-occupy and lease out the balance of the property and receive a solid income stream while establishing a presence in Lygon Street, Carlton.”

Bourke noted the property is surrounded by an impressive mix of national retailers including Mecca, Sportsgirl, Country Road, and Readings, along with a vibrant selection of renowned bars and eateries such as Grill’d, Fishbowl and local icons Brunetti, Tiamo, and DOC Pizza. Regeneration of Lygon Street is happening just a few metres away at the iconic King & Godfree building, where the deli, wine store, café and restaurant Agostino are under renovation.

“Lygon Street is really buzzing with the return to dining and nightlife in Melbourne, and an eclectic wave of new restaurants, eateries and bars has been opening up to complement the strip’s traditional Italian classics,” he said.

According to Fitzroys’ most recent Walk the Strip report, vacancies on Lygon Street have come down from 20.0% in the depths of COVID to now sit at a healthy 7.5%.

Liu said student and residential apartment developments in Carlton and nearby will further support trade and activity along the strip, which attracts visitors from the surrounds, including the nearby education and health precincts, and across Melbourne.

He added that good accessibility has become an increasingly important predictor of the performance of shopping strips.

“Lygon Street has excellent tram and bus connections in addition to plentiful public car park options, including the Elgin Street public car park providing over 200 car spaces. The brand-new Parkville Station, meanwhile, is set to open soon within walking distance from Lygon Street as part of the Melbourne Metro Tunnel project, and improve connectivity to wider metropolitan Melbourne,” he said.

Fitzroys has dominated the Lygon Street market in recent times. Chris Kombi, Shane Mills and Ben Liu of Fitzroys sold 279-281 Lygon Street prior to auction for $1.678 million, on a high land rate of $13,115/sqm and sharp passing yield of 3.45% in the first time the property had been offered for sale in 53 years. In another sale 53 years in the making, Fitzroys sold number 223 with vacant possession for $1.51 million after a campaign the generated interest from investors and owner-occupiers alike.

Fitzroys is also currently marketing 327 Lygon Street, Carlton for sale via Expressions of Interest. The freehold opportunity features a renewed 5-year lease to Carlton Eye Lab and a residential dwelling upstairs that has separate access.