A piece of Melbourne’s culinary heritage has changed hands for the first time in sixty years
A small warehouse with an outsized place in Melbourne’s food history has been sold at auction, marking the end of an era for the iconic South Melbourne Market Dim Sims business. The property at 147 Market Street, South Melbourne, where the beloved dim sims were originally produced, fetched $1.08 million under the hammer in a fiercely contested sale.
Six Decades of Family Ownership
The 123-square-metre site, featuring an 85-square-metre building, was offered for sale for the first time since the Cheng family acquired it more than 60 years ago. According to Teska Carson agent and auctioneer Rory Teska-Szer, the property served as one of the first factories where the now-famous dim sims were made.
The South Melbourne Market Dim Sims story began in 1949 when founder Ken Cheng started selling dim sims at Caulfield Racecourse before relocating to South Melbourne Market. His sons Edward and Phillip later expanded the family business, opening additional locations at Preston Market and Queen Victoria Market. Today, the original shop consistently attracts long queues of customers and is widely regarded as one of Melbourne’s premier dim sim destinations.
Fierce Competition Reflects Location Appeal
The October auction drew approximately 60 onlookers and four active bidders who exchanged 55 bids throughout the proceedings. The graffiti-adorned brick building, advertised with development potential subject to planning approval, ultimately sold to an owner-occupier.
“Competition was fierce from the very first call,” Mr Teska-Szer noted. “The property itself wasn’t too flashy, but the turnout and level of competition show how fiercely buyers want to be in that location.”
Prime Positioning in Inner Melbourne
The warehouse’s appeal extends beyond its culinary pedigree. Situated steps from South Melbourne Market and offering easy access to the CBD and public transport, the property exemplifies the strong demand for well-located commercial sites in Melbourne’s inner suburbs.
“We knew the location would attract attention, but the size of the crowd on auction day exceeded all expectations,” Mr Teska-Szer said. “With easy access into the CBD and footsteps away from South Melbourne Market, public transport and many more big-name tenants, it’s clear why the property was so sought after.”
The sale was managed by Teska Carson’s Larry Takis and George Takis and reflects growing buyer confidence in premium Melbourne commercial locations despite broader market headwinds.
Investment Implications
The result demonstrates several key trends in Melbourne’s commercial property market. Smaller format properties in prime inner-city locations continue to attract strong competition from both investors and owner-occupiers. Sites with development potential, particularly in established areas close to major amenities and transport infrastructure, command premium pricing.
For commercial property investors, the sale reinforces the value proposition of inner Melbourne locations with strong foot traffic and established community connections. Properties positioned near major retail precincts like South Melbourne Market offer diverse options for repositioning and value-add opportunities.
The $1.08 million sale price, achieved through competitive bidding, suggests a sustained appetite for commercial assets in South Melbourne, a suburb that has successfully transitioned from its industrial heritage to a mixed-use precinct combining residential, retail, and commercial uses.
