This article is from the Australian Property Journal archive
BOX Hill is alive with sound of vendors laughing all the way to the bank, after two neighbours sold their development sites to a Chinese developer for 75% above initial expectations.
Savills’ Julian Heatherich, Benson Zhou and Clinton Baxter negotiated the sale of the 500 Station St property, a former service station site of 1,090 sqm for $3.5 million – on a yield of 1.8% – a record low for an industrial zoned land. It is currently occupied by an exhaust repair centre at a rental of $63,000 per annum.
The property was on the market for one day and the vendor had initially expected it would fetch $2 million.
However the vendor of 500 Station St changed their price expectation after witnessing the off market sale of a neighbouring site at 480-480A Station St, which set a new benchmark, when it sold for $3.5 million.
The off market sale of 480-482A Station St was negotiated by Cushman & Wakefield’s Robert Colaneri and Andrew O’Connell, on a sub 3% yield.
The 1,020 sqm site is currently zoned Industrial 3 but has the potential to be rezoned for residential or mixed use.
It is believed that the same purchaser, a local Chinese development group, bought both properties, which total 2,110 sqm.
Cushman & Wakefield’s Colaneri said Box Hill has emerged as one of Melbourne’s hottest development/investment markets.
“This sale set a precedent for industrial land in the immediate area, including the sale of 500 Station Street and, it’s clear that ongoing interest amongst investors and developers continues to place upward pressure on land values,” Colaneri said.
Savills’ Heatherich said the 500 Station St property received over 35 enquires and two offers within the first few hours of going on the market.
“The vendor was blown away, he and his wife are absolutely staggered by what took place,” Heatherich said. “Box Hill is continuing to experience significant demand from both local and more particularly off shore buyers, who are looking to secure a foothold within one of Melbourne’s most rapidly evolving areas.”
Baxter said that the property was purchased by a local Chinese development group, who know and understand Box Hill intimately.
“They were in a hurry, and not prepared to wait a moment longer to purchase this strategic corner landholding.
“Box Hill is absolutely booming, with land values rising almost by the week,” Baxter said.
This latest transaction comes just a fortnight after a 1,972 sqm Commercial 1 zoned site at 843 Whitehorse Rd Box Hill sold to a Chinese-backed local developer for $22.55 million – in a deal handled by Savills.
In the last three weeks, an investment group with Chinese connections acquired the 1,305 sqm site at 15-17 Prospect St for $12.2 million, whilst a 1,207 sqm property at 22-24 Prospect St sold for around $10.5 million.
The 15-17 Prospect St site was sold by Savills and Colliers International with an existing two-level 2,121 sqm office building and basement parking for 60 cars, and is fully leased to international machinery group Cummins with one year remaining on their tenure.
More than 100 enquiries from local and offshore parties were received for 22-24 Prospect St, which transacted at a land rate of $8,700 per sqm after a campaign handled by Gross Waddell and Lawson Real Estate.
Australian Property Journal
