This article is from the Australian Property Journal archive
A St Kilda landholding occupied by Australia Post is entering the market, after almost 50 years.
The 3,469sqm site at 170-172 Chapel Street, sits on the corner of Chapel Street, Brighton Road and Grosvenor Street, offers over 140m of street frontage and thanks to a Design and Development Overlay has potential for development into a major suburban project.
Julian White, Justin Dowers and Chao Zhang from Stonebridge Property Group have been exclusively appointed to manage the sale via an international expressions of interest campaign.
“There has been a severe shortage in Melbourne’s inner city suburbs of development sites suitable for substantial apartment development,” said White, partner at Stonebridge.
The site is leased to Australia on a short-term basis, and is generating a net income of $413,662 per annum. This extensive net return should allow any potential purchaser/developer the time to secure permit approval.
“Many major developers are recognising now is the time to be building their pipelines given forecasted growth in the residential markets, but there have just not been the sites for sale to fulfil this demand,” said White.
The landholding is within close proximity of amenities such as the Carlisle Street retail shopping strip, St Kilda Beach and Luna Park.
While Balaclava Train station is just 350 metres away, with tram lines along the Nepean Highway and Chapel Street.
St Kilda has seen median house prices climb by 61% over the past 12 months and 11.4% in the last quarter alone, according to REIV.
“NAB recently released data predicting a further 17.6% increase in Melbourne’s median house price to the end of 2021. The need for more affordable housing options, in the form of apartments, just must increase. This site with short term income, provides the perfect platform to time a development to fulfil this future demand,” added White.
The international expressions of interest campaign for 170-172 Chapel Street is scheduled to close on 9 September 2021.
