A Richmond office building has fetched $4.1 million at auction, setting a new benchmark for property values within the Richmond and Cremorne districts.

The 470sq m, two-level corner building at 5 Stewart Street sold with vacant possession to a local investor.

Savills Australia’s Clinton Baxter, Jesse Radisich and Glenn Ye brokered the deal for 5 Stewart Street at a “staggering” land rate of $17,400/sq m in front of a crowd of more than 50 people.

“The land rate demonstrates the huge demand that exists for properties within the Cremorne area, increasingly becoming known as the Silicon Valley of Melbourne, with many technology companies moving into the precinct,” Mr Baxter said.

“While the market may have come off record highs throughout some areas of Melbourne, it is still powering along in Richmond, especially anywhere near Cremorne.”

Jesse Radisich went on to highlight the significant investment upside in the area.

“A whole range of owner-occpier businesses, investors and land-bankers with an eye on future development options showed strong interest throughout the campaign,” he said.

“Many buyers are looking to break into this market, with huge ongoing upside expected over coming years.”

The vendor intends to relocate his business to St Kilda.

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