A retired Melbourne businessman looking for a local bolthole close to his favourite restaurants and shops has paid $12.5 million off-the-plan for a penthouse in Toorak Village as local downsizers drive demand at the luxury end of the apartment market.

The single floor, 400sq m residence is the centrepiece in a $120 million mixed-use residential and office project being undertaken by local developer Orchard Piper on a corner site at 424-426 Toorak Road and 109 Mathoura Road.