An Armadale retail asset has sold for $6.3 million to a local developer, highlighting the ongoing demand for premium opportunities in Melbourne’s blue-chip eastern suburbs.

Savills Australia’s Nick Peden, Clinton Baxter and Jesse Radisich brokered the deal for 929-933 High Street, Armadale, achieving a land rate of $7,701 per sqm and a tight yield of 1.32 percent.

“The sale was transacted on a very tight yield of 1.32% and a land rate of almost $8,000 per sqm, which highlights the current push from buyers to secure prime properties within Melbourne's most premium suburbs,” Mr Peden said.

Despite concerns involving the heritage elements of the site, Mr Peden said the Savills Melbourne team were able to secure an “outstanding” result.

“More than 110 parties were registered throughout the campaign and this transaction follows on from our recent sale of 941-951 High Street, Armadale, which sold for $7 million,” he said.

The property is currently leased to two retail tenants with renewal options until at least 2023, and returns a total of $83,280 per annum.

“This sale represents the Savills Melbourne team's 55th Melbourne development site sale of 2018 and cements Savills Melbourne as the clear market leader in the sale of Melbourne development sites,” Mr Peden said.

Learn more about Savills Retail Investments.