This article is from the Australian Property Journal archive
ANOTHER day, another set of homeowners, this time in Glen Iris in Melbourne's south-east, have teamed up to sell their properties to a developer for a premium price of $3.4 million.
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Colliers International’s Ben Baines, Ted Dwyer and Hamish Burgess have sold two neighbouring properties at 1520 High St and 65 Erica Avenue Glen Iris as a 830 sqm residential development site to a local developer.
“This offering continued the widespread trend of multiple home owners putting their houses up for sale together as development sites,” Baines said.
“The campaign was extremely well received with over 105 enquiries and numerous strong offers, which resulted in the property being sold only 24 hours after the EOI period closed. The eventual sale price resulted in a record land rate for the area of $4,096 per sqm.
“Both owners received approximately 30% more through the process of selling to a developer than they would have done had they sold their houses individually,” he added.
Baines said the exceptional interest and subsequent result is largely reflective of the large disparity between the median house price and median apartment price in Glen Iris.
“We have witnessed firsthand a growing trend among property owners to create boutique, blue chip development sites by selling their neighbouring properties together.
“The practice is becoming increasingly common following residential zoning reforms which were gazetted in July last year,” he continued.
Nearby in Kew East, Colliers` Peter Bremner and Hamish Burgess have sold two neighbouring properties at 831-835 High St to a Chinese developer. The 2,377 sqm site consisted of two properties, which were marketed together.
Burgess said the site was identified as suitable for a multi-level residential development given its zoning, slope and high profile location.
“A site feasibility study was prepared by Buchan Group Architects which provided for a three-level, 52 apartment development with basement parking.
“After receiving in excess of 130 enquiries, the property was hotly contested by a number of parties and the price, whilst undisclosed, was driven above expectations. This sale demonstrates not only the insatiable demand for well-located development sites at present but also the opportunity for existing homeowners to capitalise on recent changes to residential zones and achieve premium sale prices by offering conjoined house blocks as larger development sites,” Burgess said.
Recently local developer Citiplan Property acquired four neighbouring properties at 170-176 McKinnon Rd McKinnon. Hamish Burgess, Peter Bremner and Andrew Ryan assisted the four owners to sell the combined site for $4.18 million.
“The site was zoned General Residential and as such, three levels would be achievable (STPA). Throughout the campaign buyers indicated a strong belief that the sites could yield approximately 30 apartments.
“Throughout the campaign there was a phenomenal amount of enquiry that resulted in a highly competitive process. Local, national and off-shore developers were drawn to the property because of the favourable location and amenity right on the property’s door step. Buyer and vendors were ecstatic with the result,” Baines said.
Baines said agents were also seeing an increase in activity from Asian buyers in Melbourne’s metropolitan market as this buyer group began to look outside the CBD. He said around 70% of enquiries for this kind of property with development potential was now coming from offshore groups.
Australian Property Journal
