This article is from the Australian Property Journal archive
BRUNSWICK Market has become the latest major site slated for residential development in the inner Melbourne suburb, after selling for $17 million off market.
It is understood the market will continue operating for the foreseeable future while the new owners, an interstate based developer with overseas interests, work on their plans for a major apartment project. The site has commercial 1 zoning and a preferred development height of six to seven levels.
Encompassing a 3,059 sqm landholding, 655-661 Sydney Road & 50-52 Breese Street has four street frontages and has been home to the Market for over 20 years, which will continue doing so for the foreseeable future.
The transaction was handled by Jesse Radisich and Nick Peden from Savills, and Cameron Elliott from Blount Osborne Walsh, having been were engaged to source a buyer for the Brunswick Market property on behalf of the vendors who have owned the property since 2004.
Blount Osborne Walsh had worked closely with the vendor for the past 10 years. Elliott said the campaign targeted local groups and major developers, as well as interstate and offshore groups seeking major landholdings and opportunities in Melbourne.
On Albert St in Brunswick, major diversified companies Stockland and Mirvac has just bought 1.4 hectares of industrial land that will be turned into apartments.
Stockland embarked on its return to the Melbourne apartments sector last month after a decade long hiatus, splashing out $15 million 4,010 sqm of land at 429 Albert St. Plans are to build 10 townhouses and about 140 apartments.
The property was initially part a string of 12 industrial properties that Mirvac had successfully lobbied Planning Minister Richard Wynne on behalf of landowners to have rezoned to mixed use. Mirvac then walked away from an agreement to buy the entire amalgamated block, at 395-429 Albert St, but after 18 months returned to the table to pay nearly $40 million for 395-403 Albert St. It is planning a build to rent project of more than 400 dwellings with an end value of over $200 million on the site in partnership with Milieu.
The Brunswick Market sale price represents a land value rate of $5,557 per sqm, which the agents said sets a new land value benchmark for Brunswick for a major landholding.
“Situated a short walk from Anstey Train Station, this pocket of Brunswick continues to attract huge interest from developers with many major projects currently under construction or planned by developers, including Milieu and Nightingale Housing,” the selling agents said.
Elliott said the size of the land in this location was a major drawcard to a number of buyers, and the scarcity factor played a major role in the significant demand for the land and the eventual sale.
Radisich said the transaction is a huge vote of confidence for Brunswick, and Melbourne’s inner north generally.
“It is undoubtedly a sign that developers are willing to compete aggressively and pay a premium for sites that offer that scarcity factor along with significant upside.”
