Melbourne’s biggest eyesore listed for sale by China’s Wang Hua
1 Rathdowne St, Carlton, has been the target of vandals and a growing eyesore for more than a decade.
Melbourne’s biggest eyesore has been listed for sale with industry sources indicating it could sell for north of $62m.
The former Cancer Council building at 1-23 Rathdowne St has been deteriorating for more than a decade amid a number of failed attempts to gain development approval since ultrawealthy Chinese man Wang Hua bought it for about $21m in 2013.
The property was listed for sale late on Friday in a definitive sign he has given up on developing the controversial site, which carries significant overshadowing overlays for the Carlton Gardens across the road.
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The site is understood to have a six-storey height limit under council planning regulations.
The property has had complaints raised over vandalism, vermin and anti-social behaviour.
It’s also had planning proposals to turn it into a luxury home tower rejected, most recently in 2022 when Mr Hua had sought to establish a 13-storey tower at the address.
The property has been listed by Ascend Real Estate’s Chen Sun who said he had already had interest in the property, and expected it would most likely attract the attention of interstate or international developers with deep pockets.
Wealthy Chinese businessman Wang Hua
The 1-23 Rathdowne St, Carlton, property is expected to attract developers.
The property is opposite the Carlton Gardens, with planners in the past raising concerns about overshadowing the garden site.
Mr Sun would not disclose a price expected for the property, but indicated that with expressions of interest due by September 18, it was hoped the new owner could take control of the property before the end of the year.
“It just needs time to find the right buyer,” he said.
Commercial property expert Mark Wizel said the property could have a future as a health precinct development, but would also appeal as a residential tower — so long as issues around overshadowing concerns could be overcome.
The Wizel Property Group founder said a square metre rate of $20,000 was not infeasible, and that redevelopment would be a boon for the “unloved” space that outlived its use as a small-scale office building.
Across the property’s 3106sq m size, that would translate to more than $62m.
“It’s probably a rare development site at the moment that does have the potential to stack up from a feasibility point of view, because the going rates for apartments in that location would significantly outperform the rest of the market,” Mr Wizel said.
A $20,000 per square metre price is believed to be feasible for the site.
The property is a gateway site to Melbourne’s CBD, opposite it’s northeastern corner.
City of Melbourne acting lord mayor Roshena Campbell said they hoped the sale would mean a new beginning for the property.
“We know there is a keen interest in the next chapter of 1 Rathdowne Street. Council stands ready to support the redevelopment of this critical corner of the city,” Ms Campbell said.
Last year, former Lord Mayor Sally Capp described the property as one of the top sites that the City was hoping would be developed — potentially even higher up the list than multiple already demolished sites along King St.
She had previously named it on her list of city’s worst eyesores in 2018.
The property was slated for a $5m revamp to improve it in 2019, but remains covered in graffiti and continues to prompt concerns from local residents today.
Mr Hua’s controversial ownership of the Carlton address is not his family’s only involvement in Melbourne’s property market.
The 16 St Georges Rd, Toorak, property is being quietly offered for sale with $40m hopes.
How the property looked prior to the demolition works.
In 2015, his wife, Xiaoyan ‘Kylie’ Bao, spent about $18.6m buying a 16 St Georges Rd, Toorak, mansion, before demolishing it despite the City of Stonnington seeking interim heritage protection for the home.
It is understood that property, still a bare patch of dirt, has been quietly offered to buyers in the elite suburb with suggestions it could top $40m.
RT Edgar’s Jack Edgar is taking interest in the home and said last month that there was renewed international interest in Melbourne’s priciest postcode.
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