This article is from the Australian Property Journal archive
TWO years after purchasing the site, China-based Hong Se International has listed a 2.6-hectare property with in Melbourne’s east with residential development potential, formerly home to the Australian Road Research Board, with expectations of circa $26 million.
The high-profile site at 490-500 Burwood Highway in Vermont South has 130 metres frontage and currently has 13 1970s-era office buildings.
Hong Se International paid $25 million for the site in 2017, shortly after buying a Norvel Road quarry in Ferntree Gully for more than $30 million and an Ashwood site.
CBRE’s Mark Wizel, who is marketing the asset with colleagues Lewis Tong, Ashley McIntyre and Chao Zhang, said the asset would appeal to developers looking to take advantage of the area’s growing population and the site’s apparent suitability for townhouse, apartment, aged care or retirement living uses.
“Location is of course critical to the success of any large scale development and that is largely about population and amenities.”
Figures from Forecast.id suggest the City of Whitehorse’s population will grow by 27.93% from 179,251 in 2019 to 229,324 in 2041.
“That sort of catchment and growth has underpinned the success of many of the region’s best retail centres including Burwood One, Westfield Knox, Eastland Shopping Centre, Box Hill Central, and Westfield Doncaster,” Wizel said.
Wizel said new residents had also been attracted by the quality schools such as Wesley College, Caulfield Grammar, and Deakin University, several transport options including trams, trains and buses, quick access to EastLink, and numerous recreational facilities including Terrara Park, East Burwood Reserve, Koomba Park and Bushy Park Wetlands.
The agents would not be drawn on price expectations, but industry sources suggest a figure of around $26 million.
Tong developers out of Asia are expected to show interest, saying Vermont South has a “very strong multicultural community with nearly half of the residents having been born overseas, including an Asian contingent of close to 20%, more than 50% of which is Chinese.”
“Asian developers are well aware that these people have a strong tradition and liking for multi-unit apartment living. You only have to look at nearby developments in and around Box Hill and Glen Waverly to appreciate the success of that type of project,”
Expressions of interest close 29th May.
Australian Property Journal
