A low-rise building at 42-48 Moray Street, on 972 square metres and currently dwarfed by the imposing freeway overpass, is expected to make way for a 50-plus level tower in the medium term.

The CBRE deal, estimated to be worth about $14 million, values the land at about $14,400 per square metre, considered healthy given the site was not offered with a redevelopment permit.

By comparison, nearly six years ago, a similar-sized block in nearby Haig Street, exchanged for $5300 per square metre. That site has since made way for the 52-level Tiara building.

Last year, a 940-square-metre block at 84-90 Queensbridge Street sold for $22 million, or just over $23,400 per square metre of land. Abutting the Kings Way overpass, it was offered with a permit for a 54-level building.

In the 2013 economic downturn, however, a 1455-square-metre Southbank site abutting the West Gate at 42-48 Balston Street sold for $6.9 million, representing $4742 per square metre.

Freeway commuters will notice that site making way for The Marco, which will offer some 350 flats in two towers rising 37 and 27 levels.

Also on sites adjacent to the freeway, plans are also afoot to build a major residential tower at 342-346 City Road – currently the Urban Central Budget Accommodation backpackers, but which sold to a developer recently and has been the subject of a planning application.

What may be the freeway precinct's biggest development is earmarked for a two-hectare block also bound by Balston, Kavanagh and Power streets, which sold to Malaysian builder PJ Development Holdings for $145 million last June.

Fifteen years ago this block was permitted to become five mid-rise office buildings. It is now expected more than six towers of over 80-levels could replace the open-air car park.

Also abutting the West Gate Freeway at Southbank, Savills has just sold a 190-square-metre site at 35-37 Hancock Street for a price speculated at nearly $3 million.

The agency has also recently listed a 168-square-metre block at 11-13 Hancock Street, with a permit for a 33-level residential building. This site is next door to the 42-48 Moray Street block which just sold.

CBRE agents Josh Rutman, Mark Wizel and Tom Tuxworth, agents on Moray Street, declined to comment on any part of the deal when contacted.

According to CBRE research, more than $130 million in major Southbank development sites exchanged last year.

At the end of 2013, Singapore developer Aspial Corporation paid $42 million for a 2642-square-metre block at 70 Southbank Boulevard, with a permit for a 100-level apartment and hotel building which upon completion will be the country's tallest residential skyscraper.