This article is from the Australian Property Journal archive
AN offshore developer – guided by a local company Pomeroy Pacific – has paid more than $6 million for a residential development at Newport site.
Located at 6 Paine St in Melbourne`s inner south-west the site was sold with development approval for 24 townhouses and 15 garden villas.
It was sold off the market by CBRE`s Victorian development sites team of Ed Wright – Julian White and Jamus Campbell.
Wright said the site’s positioning within a proven residential market – approved planning permit – and close proximity to public transportation – had ensured that the sales campaign was fiercely competitive.
“The site attracted strong interest from local and offshore buyers – with both groups recognising the significant affordability issues currently impacting Melbourne’s suburbs.
“These buyers are recognising the opportunity to capitalise on the margin between house and apartment prices to seek potential development projects outside of traditional Melbourne apartment areas such as Southbank – St Kilda Road – South Yarra – Richmond and Prahran,” he added.
“The offshore purchaser – with the guidance of local development and project manager Pomeroy Pacific – was able to identify the opportunities the site offered and the earning potential of the end product,” he continued.
Victorian development sites senior director Mark Wizel said the sale represents a growing trend for offshore capital to move away from the city and into the suburbs.
“We are continuing to experience strong demand for permitted development sites in suburban locations – including a 19% increase in demand from off shore parties. The consistent sales of development sites outside the CBD in the $5m+price range further demonstrate the strength and depth of the current market,” Wizel said.
This is 11th suburban development site sale completed by the CBRE in the past three weeks.
CBRE in conjunction with Gross Waddell sold another a development site at 2 Park St and 76-76A Albert St Mordialloc for $8.85 million to a local buyer.
The 6,949 sqm site has a planning permit for 95 apartments and 11 townhouses. The sale reflected a strong rate of $83,500 per unit.
CBRE’s Scott Orchard handled the expression of interest campaign along with Gross Waddell’s Michael Gross – on behalf of private investor The Hermal Group.
Other recent transactions include:
· 6 Paine St Newport – Undisclosed
· 2-6 William St South Yarra – $9,330,000
· 33 Park St South Yarra – $4,600,000
· 2 Park St & 76-76A Albert St Mordialloc – $8,850,000
· 2-12 Gwynne St Cremorne – $8,850,000
· 4-6 Cubitt St Cremorne – $4,350,000
· 31-33 Park St South Melbourne – $4,775,000
· 382-386 Burnley St Richmond – $7,000,000
· 53-65 Burnley St Richmond – $22,000,000
· 71-75 City Rd Southbank – Undisclosed
· 122-126 Berkeley St Carlton – $6,885,000
Australian Property Journal
