This article is from the Australian Property Journal archive
A LOCAL developer has trumped strong competition from Chinese and Malaysian players, to buy a significant site at South Yarra in Melbourne's city fringe for $16.4 million.
Located at 1-23 Millswyn Lane South Yarra, the property is currently home to the Albany Hotel, within the coveted Domain Hill precinct. It occupies a 2,152 sqm corner site and improvements include the Albany Hotel, which comprises 81 rooms, restaurant and bar, 24 car spaces, plus rooftop pool and deck. The property offered an opportunity to refurbish as a mansion residence or sub-divide (STCA).
CBRE’s Mark Wizel, Scott Orchard and Mark Granter negotiated the sale, however declined to comment on the specifics of the sale.
Wizel said the transaction is further evidence of the ongoing strength from local developers for non Melbourne CBD locations.
“With the Melbourne CBD on the whole being dominated by offshore developers, many local buyers including the successful party at the Albany have seized on city fringe and suburban locations in order to secure projects,” he added.
Wizel said the sale points to a full recovery in the Melbourne residential market with developers now showing confidence to develop a variety of projects both in the traditional one and two bedroom space but also in the high end residential apartment space.
Buyers took a lot of confidence from the major success of the Hudson Conway (Lloyd Williams) development in Marne St, which is located nearby the Albany Hotel. It is understood that rates close to $20,000 per sqm had been achieved in that development.
It is understood that high end projects such as 35 Spring St have attracted significant demand from Chinese buyers who have the capacity to buy apartments from $5 million to $30 million and are quite accustomed to luxury penthouse apartment living from their conditions in China.
Australian Property Journal
