The site of St Kilda’s iconic former Greyhound Hotel has sold for $7.5 million, following its controversial demolition earlier this year.

Steller has secured the high-profile property at 1 Brighton Road, St Kilda, on the corner of Blessington Street, which has a newly approved permit in place for a seven-level mixed-use project comprising 37 apartments and two retail spaces.

Savills Clinton Baxter, Jesse Radisich and Nick Peden brokered the deal for the 911sq m landholding via expressions of interest after receiving extensive enquiry from local and Asia-based developers.

“The site drew a huge amount of interest from buyers wishing to secure the property for development,” Mr Baxter said.

“It was particularly attractive by virtue of its high-profile location, abundant local amenity, and existing plans and permit for a boutique multi-level project.

“After a competitive bidding process, we ultimately sold the site to Steller – one of Melbourne’s most active developers of inner suburban and bayside projects.”

The sale price represents a land rate of $8,200 per square metre and $200,000 per approved unit, notably high for the area, reflecting the sustained appetite for development sites close to the city.

“We are experiencing extremely strong demand from local developers seeking to secure boutique permit-approved apartment projects within 10 kilometres of Melbourne’s CBD,” Mr Radisich said.

“This is a sector of the market where owner-occupier and downsizer demand for apartments is at its highest, and construction funding from the major banks is most available.”

Mr Radisich said the site’s proximity to public transport routes, the popular retail strips of Carlisle and Acland streets, and the beach was a key influencer in Steller’s decision.

“The buyer recognised the unquestionable value of this pocket of the city fringe, an up-and-coming precinct that will be inundated by high-end apartment dwellings in the years to come,” he said.

Terry Harper Architects has designed the project’s 37 one- and two-bedroom apartments, which will be an average size of 74sq m. There will be 50 carparks included in the development.

Learn more about Savills CBD and Metropolitan Sales team.