Proposed Collingwood rezoning site sells for $3.95 million

A 915 square metre site in Melbourne's Collingwood and marketed as a development opportunity has sold for $3.95 million.

The sale was brokered by CBRE’s Jamus Campbell.

According to the agent, the sale of the 73-77 Sackville Street site wasn't without challenges, with the dated office and warehouse accommodation providing no holding income and the Commercial 2 zoning limiting residential development potential.

The price translated to a rate of $4,316 per square metres.

“The high developer demand for Collingwood sites with Commercial 2 zoning has been underpinned by the Victorian state government’s Plan Melbourne 2050 initiative, which earmarked Collingwood for significant urban renewal,” Campbell said.

Plans are also afoot to develop the surrounding areas into a mixed-use precinct comprising cafes, retail, office and residential accommodations.

“To facilitate this vision and enable residential development, the City of Yarra are considering rezoning Commercial 2 properties to Commercial 1, which has resulted in a flurry of savvy landowners in Collingwood making the most of record prices being paid,” Campbell added.