This article is from the Australian Property Journal archive
AUSTHOME Group, a Melbourne based developer with links to China, has snapped up a residential site opposite the Queen Victoria Market for $10 million.
The off market deal was negotiated by CB Richard Ellis associate director, city sales, Mark Wizel and CBRE manager Sebastian Drapac.
The site at 212 Victoria St comprises 1,011 sqm and has approval for a 19-level 214 apartments tower with four ground floor retail tenancies.
It was sold to Austhome – a luxury home builder seeking to diversify into the Melbourne apartment market.
Wizel said developer interest in acquiring residential sites in both the Melbourne CBD and its immediate fringe is being fuelled by the continued strength of the inner city housing market.
“The shortage of inner city residential apartments and the high level of demand from both investors and owner occupiers have fuelled significant increases in city apartment values and this is driving demand for strategically located development sites.
“Latest figures from the REIV show that the average prices paid for Melbourne CBD units and apartments increased by 19.2% in the December quarter, with Docklands recording a similarly strong increase of 17.1%,” he added.
Wizel said the high price paid for the site at just under $10,000 per sqm demonstrated the increased confidence in the market following a series of Melbourne site sales, among them the $13.5 million sale of Crown Melbourne’s City Road site at Southbank.
Central Equity secured the Crown Melbourne land, which has the potential to accommodate Southbank’s next landmark apartment tower.
Wizel said the Southbank campaign had attracted 12 Expressions of Interest – despite the fact that there were no existing planning permits in place. A planning application to build apartments on the property has now been submitted.
The next test of the market will come from the sale of a prominent 0.4 hectare CBD development site owned by billionaire businessman Solomon Lew. The 151-165 Franklin St site is being offered for sale for the first time in 30 years and is expected to accommodate several high rise towers.
Wizel said the interest coming offshore developers is also driving prices.
“In the past 12 months we have fielded particularly strong interest from Asian-based groups looking to secure development projects in Melbourne,” he concluded.
Australian Property Journal
