This article is from the Australian Property Journal archive
MORE than $10 million worth of off-the-plan strata offices in ritzy Toorak’s main shopping precinct have been snapped up by local owner occupiers at record rates.
The two office suite sales within Orchard Piper’s $120 million Toorak Village residential and commercial development mean 50% of the three-floor office offering has sold.
The latest sales reflect a building rate of $17,021 per sqm, which Colliers selling agents Ben Baines and Matt Knox say set a new city fringe and suburban record. They said the highest previous rates were achieved in Orchard Piper’s East Melbourne project in May last year for in excess of $15,000 per sqm, also sold by Baines.
“There has been strong interest in the space throughout the campaign, with over 75 enquiries, highlighting the resurgence of demand in the city fringe space,” Baines said of the Toorak Village development, which are the first opportunity to buy brand-new strata offices in the well-heeled suburb for decades. All remaining office spaces expected to close in the coming weeks.
Orchard Piper’s received approval for the mixed-use project in April. The development comprises luxe apartments, commercial offices and ground-floor retail spaces, all designed by high-profile Kerry Hill Architects. Located on the corner of Toorak and Mathoura Road, 420 Toorak Road is just five kilometres from Melbourne CBD and within walking distance of both Hawksburn and South Yarra train stations.
The development is bringing new retail offerings an upgrade of the streetscape between Wallace Avenue and Grange Road is underway.
Colliers data shows limited construction in 2020 and 2021 in the city fringe market caused an undersupply of stock, which can be seen through decreasing vacancy rates from 12.7% in September last year to 12.3% in March. It has increased the average land rate of city fringe commercial properties, currently sitting at an estimated $10,000 per sqm, significantly rising from $8,500 per sqm in 2020.
Knox said there is a push for quality and high amenity spaces, as owner occupiers and investors are attracted to brand-new premium-grade strata offices outside the CBD.
Nearby, Orchard Piper recently lodged plans for a $400 million luxury apartment project on a Mercedes-Benz dealership site that it bought a year ago.
