Land parcel sets suburb record in Port Melbourne

The power of The Block seems to be spreading in Port Melbourne, as a small vacant parcel has sold for just over $2 million, setting a suburb record in the process.

The 304 sqm block at 186 Dow Street fetched $2.055 million at auction after having high $1 million price hopes.

On the market for the first time in 112 years, sale represented a $7,000 per sqm record for Port Melbourne.

It was sold by Frank Callaghan and Craig Corby at Frank Gordon - Port Melbourne.

The parcel used to have a family home, but the property was demolished in the 1980s.

Developers "jaws dropped", according to Frank, as owner-occupier bidders took control.

It's just three blocks from the foreshore, adding to its value.

Developers will have to act fast if they want to build from scratch. 

Frank said there were only two empty blocks he knew of in Port Melbourne, which made the Dow Street space particularly rare.

“What was really interesting is that we sent a number of emails, in the thousands, and we have databases for builders that have been bidding on other properties that we had, that we have sold over the past couple of years, to be demolished or where they could seek a permit.