This article is from the Australian Property Journal archive
EXPERIENCED local and offshore developers are responding to the national housing shortage have picked up sites in an inner south Melbourne suburb in deals totalling about $10 million.
The two Windsor properties attracted more than 160 registrations of interest and were transacted by Savills agents Julian Heatherich, James Latos and Benson Zhou.
The first site, at 338-344 High Street, sold to an offshore developer for a price in the high $7 million range. The property held a permit for 16 luxury apartments, designed by Cera Stribley, who is renowned for designing high-end bespoke apartment projects in Melbourne’s blue-chip suburbs.
Heatherich said the purchaser took confidence in the quality design of the project which was significantly advanced and well paired to the premium position located across from Victoria Gardens.
“Acquiring a project with design features including a double basement amid the rising construction costs and interest rises speaks to the confidence the purchaser has in the high-end apartment market, taking a bullish approach to the sale rates the project will generate.”
Finalised on the same day, 25-27 Mcilwrick Street transacted for $2,525,000.
The corner site of 503 sqm has low-density neighbourhood residential 3 zoning and held a permit for three luxury townhouses, with total net sellable area of 544 sqm with the result equating to $4,641 per sqm on NSA.
Zhou noted the desirable location within walking distance of Chapel Street, Windsor station and Chris Gahan Reserve was a key value driver with townhouse development opportunities in this precinct being scarce.
Latos said, “In the face of the new housing statement announcement and a critical shortage in housing supply, we have witnessed an increased level of engagement from buyers for inner city development opportunities.
“Despite the challenges posed by increased construction costs and interest rate hikes, the two highly experienced developers, well-acquainted with the properties complexities, placed robust bids, demonstrating their confidence in the resurgence of the development market.”
