The 3AW studios, which operated for nearly 20 years out of Bank Street, will now make way for a 170 apartment project dubbed The Domain for its location in the suburb’s Domain precinct.

The property at 41-49 Bank Street was purchased by Chinese-backed developer Virgate Property Group in 2016 for $15 million.

Virgate's 19-storey development, located on a 1,441sq m block, will feature a range of one, two and three bedroom residences and will have 124 parking spaces.

The project, designed by Bruce Henderson Architects, will reflect a luxury hotel inspired by traditional Japanese design, with high-end apartments to be priced up to $1.7 million.

Bruce Henderson Architects director John Scaramuzzino said that the design of Domain House has been carefully considered for the residents that will live there.

“We designed a building that draws on other international influences; from the lofty heights of Manhattan’s Soho neighbourhood to the serene flow of Japanese design, the approach to Domain House was diverse and worldly.”

“Much of what has been considered borrows from traditional Japanese design which features strongly in the lobby and shared areas.

CBRE managing director of residential projects Andrew Leoncelli said South Melbourne remained a strong focus due to “the sophisticated owner-occupier buyers drawn to the location”.

“The Domain Precinct is a tightly held and sought-after area, we are seeing a huge uplift in demand for high-end apartments in South Melbourne,” Leoncelli said.

“Official forecasts predict a population of 22,000 residents by 2031, growing at a rate of 4 per cent per annum.”

South Melbourne remains a strong focus for developers providing an opportunity to deliver stock to the market in a suburb with sustained pent-up demand.

The location, underpinned by Park Street and Albert Road, remains perennially popular with developers and will soon boast its own metro station.

The development will also benefit from over 240 hectares of open space including the Royal Botanic Gardens.

Virgate expects to commence construction by October 2020, with a targeted completion of mid-2022.