Mosman sale highlights demand for properties with future upside

A land banker has snapped up a Mosman commercial property for $3,050,000 to capitalise on the site’s future development potential.

The two-level, 30 Spit Road property was acquired by Stenel Pty Ltd on a passing yield of 2.66%, with the price representing a record dollar per sq m rate on floor area for the strip.

While the 151sqm building has a short-term lease to Mosman Paws, buyer interest was sparked by the property’s future upside according to the CBRE sales agent Toby Silk.

“The 176sqm site is significantly under-utilised, with the current planning controls and zoning providing for a mixed-used residential apartment block of up to five storeys, subject to the relevant planning approvals,” Mr Silk said.

There is also an opportunity to amalgamate the site with adjoining properties.

Mr Silk said the result highlighted demand for properties with strong fundamentals and high land values.

“Cash-rich investors are chasing these types of assets given low bank returns and the current volatility in the share market,” Mr Silk said.

“While the property market is shifting, limited stock means that demand is still outpacing supply for premium commercial property and record prices are being achieved.”