A local developer is the new owner of a development site in the southern Sydney suburb of Monterey, picking up the property for $2.78 million.

Savills Metropolitan and Regional Sales' Robert Lowe and Nick Tuxworth brokered the deal for 26 Chuter Avenue following a competitive expressions-of-interest process.

“The buyer intends to retain the property as is for the time being, then may redevelop in the future,” Mr Lowe said.

The 1,011sq m property currently comprises five units and three shopfronts, which generates about $113,000 gross per annum and has potential to increase.

“The buyer was attracted to the rare DA approval for six luxury two-storey townhouses, as it was an income-producing property with the ability to increase the rents,” Mr Lowe said.

Nick Tuxworth went on to say the property offered a variety of development options, including a boarding-house conversion or a childcare facility.

“It was these factors, in addition to the lifestyle characteristics of Monterey, which sealed the deal, with Chuter Avenue being close to major arterial roads, public transport routes, parks and Botany Bay beaches,” Mr Tuxworth said.