A bolt-hole café situated at the base of Mirvac’s harbourside development Latitude, which is home to some of Australia’s biggest names, has changed hands for a record rate in the affluent suburb of Milsons Point.

Colliers’ Tom Appleby and Beau Mayer sold Shop 1, 55 Lavender Street, Milsons Point on behalf of Oriental Cool Pty Ltd for $1,030,000, reflecting $35,517/sqm - setting a new dollar per square metre record for Milsons Point and North Sydney.

The property offers exceptional views of the Harbour Bridge and is located in the landmark Latitude building, which is also home to household names such as Nicole Kidman and Keith Urban.

“The sale is a testament to the market’s confidence in the local area. We’ve noticed a strong uptick in buyer sentiment for similar retail offerings, especially in vibrant metropolitan hubs such as Milsons Point, which surged in popularity during the pandemic” Mr Mayer stated.

“The property was highly sought after by self-managed super funds and local investors who lived in the neighbourhood. Buyers were particularly drawn to the prestige associated with the building, as well as the area’s growth prospects,” Mr Mayer added, “with a number of luxurious apartments slated for development.”

“Notably, as headline inflation is tipped to reach six per cent by the end of the year, investor’s were also attracted to the property’s underlying rental increases which were pegged to CPI making it an attractive hedge against rising inflation,” Mr Appleby said.

Despite expectations that the RBA will continue to increase the cash rate throughout 2022, the currently low interest rate environment is expected to continue to drive demand for commercial property investments in the short-term. Particularly for Sydney’s Lower North Shore, which is supported by a raft of private and Government investment, including Australia’s biggest infrastructure project the Sydney Metro.

Colliers also recently sold the Guylian Chocolate Café for $11.5 million, culminating in a rate per square metre of $153,358, which at the time broke the Australian retail record.