A local investor has secured a three-level building in Haymarket for $5.6 million, as the inner-Sydney precinct and surrounding suburbs make a comeback on the back of new infrastructure and development.

David Hickey and Nick Tuxworth of Savills Metropolitan and Regional Sales brokered the deal for 8 Cunningham Street via a tense on-site auction between five bidders.

“We witnessed owner-occupiers, developers and investors go head to head in a tense on-site auction,” Mr Hickey said.

“The market certainly has an appetite for undeveloped and run-down properties where they can add-value.”

The purchaser has taken a long-term view on the southern end of the CBD and plans to refurbish the existing building into a creative working space, which he feels will attract higher rents.”

“Through our extensive database and strategic marketing we received more than 240 enquiries during the campaign.”

The 434sq m building is in the heart of Chinatown’s tightly held retail trade precinct and Mr Hickey said the infrastructure boom within the area was the ultimate drawcard for the buyer.

“The pending central station redevelopment and attractive planning controls attracted a new wave of buyers looking to secure property in the Haymarket precinct,” he said.