The site comprised six separate shops ranging from 75sqm to 94sqm, some occupied on monthly tenancies, others vacant, and one with tenancy subject to a development clause.

“This represented an ultra-rare chance to acquire a Melbourne shopping strip site of this size and potential,” Talbot said.

“The owners teamed up to create and offer an unprecedented opportunity to deliver a premium project in the prime of Hampton Street, with the potential to develop a multi-level commercial, residential or mixed-use complex in one of Melbourne’s iconic shopping strips.”

He said the purchaser will make use of the favourable development potential of the site. It offers rear access from both Mills and Willis Streets, and has exceptional frontage nearly 30 metres. Zoned Commercial 1, it offers a highly attractive DD 012 Development Overlay promoting four-storey developments, capturing bay views, and with potential to add further levels.

“The owners’ decision to amalgamate their sites immediately unlocked the value and potential of the land,” he said.

“Prospective buyers recognised this was a genuine generational opportunity to acquire a site of this magnitude located within a Melbourne shopping strip, let alone a popular bayside precinct.

“The rarity of the offering was reflected in the huge enquiry seen during the campaign, with more than 100 local and offshore buyers showing interest. Clearly, the pandemic hasn’t dented appetite for properties along and around Melbourne’s shopping strips.”

The price was undisclosed, but a very strong result is believed to be achieved on the basis of expectations of $8 million-plus.

Talbot said the enquiry and sale result displayed the confidence developers have in the residential market. Melbourne prices have rebounded over the past few months, government incentives and low interest rates have helped push Melbourne unit prices to record highs, according to Domain data, with Hampton among the standout performers.

“Hampton attracts a younger demographic from the affluent surrounding bayside suburbs, from Brighton down to Beaumaris, through the growing offering of cafés, restaurants and eateries along Hampton Street, its supermarkets and shopping options, and its beach location,” Talbot said.

“This demographic in particular has embraced first home buyer incentives that have played a key role in the residential market’s recovery.

“This has increased demand for medium and high-density residential projects along and in the immediate vicinity of the strip.”

Luo said highly-accessible locations are currently very popular, and this site proved to be no exception. Hampton train station is close by, while Hampton Street offers ample car parking throughout the strip and the streets around it, and is also connected by multiple bus routes.

“It is positioned close to a number of schools, including St Leonard’s and Haileybury’s Brighton campus, and St Mary’s and Hampton primary schools, is another drawcard for young couples and families.

“In a period in which working from home is more commonplace, locations within and close to Melbourne’s famous shopping strips that offer hospitality and lifestyle options are particularly important to workers and young professionals.”

Close to the site are the high-performing Woolworths Supermarket, Discount Chemist, Westpac Bank, Family life, Bank of Queensland, Australia Post, and BWS, a high number of popular local traders and hospitality operators, and an abundance of public car parking.