$350,000 for just 12 square metres of cafe?

Would you pay $350,000 for a property smaller than the typical carpark?

A South Yarra cafe measuring just 12sqm is up for grabs for the surprising sum.

And a Sydney-based investor has already made an offer believed to be close to its $350,000 advertised price.

Commercial Insights: Subscribe to receive the latest news and updates

Despite its small dimensions 2/7 Yarra St has attracted 30 inquiries, according to Hudson Bond’s Dylan Ashby.

“It is substantially smaller than the properties we are selling, apart from in the CBD,” Ashby says.

The tiny property also comes with a carpark on the title, potentially even bigger than the cafe — with the average Australian parking space measuring 12.96sqm.

The property would offer a yield of about 4.7%, which has helped attract buyers from investors to self managed super funds, according to Ashby.

Inside the tiny cafe that sold for close to $350,000 at 2/7 Yarra Street, South Yarra.

Smaller properties like this would “most definitely” continue to gain interest from buyers in the future as a result of their comparable affordability and attractive yields.

Stonnington Mayor Steve Stefanopoulos says the interest in the property has proven the increasingly busy Forrest Hill precinct is an important part of the region.

“It clearly indicates to me and all the other residents in South Yarra, that precinct is going gang busters,” Cr Stefanopoulos says.

Hewison Private Wealth director and a self managed super fund expert Chris Morcom says it is important for self managed super funds buyers to make sure the numbers stacked up.

“My first question for someone wanting to buy a property with a SMSF is: why? What is it you are trying to achieve?” Morcom says.

“SMSFs aren’t for everyone, you shouldn’t be setting one up if you don’t have sufficient capital.”

He adds that there is every chance the South Yarra property has ticked the box for buyers considering it, but said it is important to think it through.

“You have to look at the strategy, and ask if you are better to buy it in your own name,” Morcom says.

This article from the Leader Newspapers first appeared as “Tiny South Yarra cafe measuring just 12sq m has big appeal”.