Even if the price does not signify a continued run of big increases in the street's property values it should guarantee the presence on the street of a well known brand name in the field of luxury goods - at a property with one of the biggest windows on the street.
Although Sotheby's Australia is only a franchise of the US Sotheby's international group its name still reaches out seductively from the upper echelons of the art and antiques trade.
As Ms Palmer paid $2.2 million for the shop, number 30, in 2000 the capital gain is relatively modest, according to the property press.
But she has long moved her base to Longford and Launceston in Tasmania after selling her Randwick home for a much more buoyant price.
Unlike the property purchased on the slightly more chic, “village “ end of Moncur Road by dealer antique dealer Mr Michael Greene, there is little obvious work to be done by Sotheby's on its purchase..
The price appears attractive in that Mr Greene, renting at 108 Queen Street, paid $2.4 million for the nearby property in what was the previous sale on the street.
Unlike on Oxford Street, the main artery which it adjoins, commercial leases are at a premium.
The Greene purchase, which secures that dealer a place on the antique row, is a property with an asset which Sotheby's does not really need – a second floor.
Visitors had to negotiate a winding staircase to enter and this was not friendly to high heels in particular in wet weather.
For many years Sotheby's has been drawing visitors to its first floor position at 118-122 Queen Street but the lease is believed to expire shortly.
The company will presumably vacate this and replace rental payments with possibly lower mortgage payments. It is approached by visitors by a winding external staircase which in the rain should be carefully negotiated.
The purchase gives Sotheby's 200 square metres of retail space, and particularly useful – a big window display area.
The sale was reported by Jonathan Chancellor in Property Observer as being conducted through Bill Bridges and Meagan Pokorny of Ballard Property Group.
The Sotheby's syndicate bought it through Woollahra Land Investments, which is directed by Sotheby's Australian chairman and vice chairman, Geoffrey Smith and Samuel Cullen.
The record for Queen Street is believed to be $3.9 million paid for a 360 square metre building owned by companies associated with Lisa Ho and Mr Philip Smooha, the report said .
The Palmer sale continues Sotheby's strategy of buying or occupying stellar positions in the best parts of town.
It recently moved into Anzac House in Collins Street, Melbourne, on a rental basis while space in a new landmark block it has purchased nearby is rolled out.
It continues a lust for property in the auction industry where presentation and image is a major consideration. Mr Charles Leski and Mr Paul Sumner are renovating the former Armadale property purchased by associates in the Armadale High Street – where Sotheby's based its Melbourne operation for many years.
