A mixed-use freehold property in South Sydney with redevelopment potential has sold prior to auction following strong buyer demand during the sales campaign.

The property at 309 Princes Highway in Carlton was purchased by a local investor for $2.12 million from Jemag Pty Ltd in a deal negotiated by Adam Droubi and Anthony Pirrottina of Knight Frank.

The 562sq m site is currently occupied by a two-storey mixed-use freehold with two ground floor retail/commercial lots totalling 177sq m, including one occupied by Betie’s Café, along with a 150sq m generous three-bedroom apartment on the first floor.

It has rear lane access with off-street parking to the rear, and a favourable 12 metre street frontage.

Mr Droubi said the auction campaign for the property generated strong enquiry, leading to a sale before the scheduled auction took place.

“We had 51 purchaser enquiries and eight inspections,” he said.

“The strong buyer competition led to the property selling for $220,000 more than it did one year ago, with the gross market yield being 4.66%.

“Affordable, high-quality properties continue to attract significant buyer demand in this market, particularly those offering solid holding income in the short to medium term of an estimated circa $100,000, with the potential for upside in the future.

“Opportunities to secure freehold properties with upside at this price point remain few and far between.”

Mr Pirrottina said the property was underpinned by its future redevelopment potential, with a favourable E1 local centre zoning and significant 2.5:1 floor to space ratio.

“The zoning on this site allows for a future development to have 1,405sq m of gross floor area,” he said.

“The property is in a prime Southern Sydney location, being located in a high exposure section
of the Princes Highway. 

“If offered buyers a unique opportunity to gain a foothold in Carlton’s tightly held commercial real estate market.

“Surrounding re-development of existing comparable assets into mixed-use residential and commercial assets continues to improve amenity in the locale.

“Major retailers such as Aldi and the St George Hospital are all within the asset’s immediate proximity.”