The site of St Kilda's iconic former Greyhound Hotel sells

The site of St Kilda’s iconic former Greyhound Hotel has sold for $7.5 million, following its controversial demolition earlier this year.

The property at 1 Brighton Road, on the corner of Blessington Street, has a newly approved permit in place for a seven-level mixed-use project.

It includes 37 apartments, designed by Terry Harper Architects, and two retail spaces. The one and two bedroom apartments will be an average size of 74 sqm.

The 911 sqm landholding represents a land rate of $8,200 per sqm and $200,000 per approved unit.

Savills agents Clinton Baxter, Jesse Radisich and Nick Peden sold the property. They received extensive enquiry from local and Asia-based developers.

“The site drew a huge amount of interest from buyers wishing to secure the property for development,” Baxter said.

“It was particularly attractive by virtue of its high-profile location, abundant local amenity, and existing plans and permit for a boutique multi-level project.

“After a competitive bidding process, we ultimately sold the site to Steller – one of Melbourne’s most active developers of inner suburban and bayside projects.”

Jesse Radisich said there is an extremely strong demand from local developers seekign to secure boutique permit-approved apartment projects within 10 kilometres of Melbourne's CBD.

“This is a sector of the market where owner-occupier and downsizer demand for apartments is at its highest, and construction funding from the major banks is most available.”

Radisich said the site’s proximity to public transport routes, the popular retail strips of Carlisle and Acland streets, and the beach was a key influencer in Steller’s decision.

“The buyer recognised the unquestionable value of this pocket of the city fringe, an up-and-coming precinct that will be inundated by high-end apartment dwellings in the years to come,” he said.