This article is from the Australian Property Journal archive
A MELBOURNE-based Chinese investor has secured a Brunswick development site for around $30 million following a highly competitive international expressions of interest campaign.
The 6,320 sqm site at 699 Park St Brunswick was sold by CBRE’s Victorian development sites team of Mark Wizel, Julian White and Sandro Peluso in conjunction with Colliers International’s Trent Hobart and Bryson Cameron.
The property is subject to the C134 Brunswick Activity Centre planning amendment. With the relevant approvals, the site could accommodate a median density mixed- use development.
Wizel said there was fierce competition between local and offshore developers.
“18 expressions of interest were received, following aggressive bidding from a range of local and offshore buyers.
“We are continuing to witness strong demand from Chinese buyers, keen to secure a foothold in the Melbourne market. Whilst government measures, including additional taxation for offshore buyers and erratic planning measures, have the potential to deter offshore buyers, we are still fielding strong demand for well-located development sites and investments,” Wizel said.
White said Melbourne’s inner north is witnessing exponential demand for well location apartment projects. CBRE recently completed the sale of 111 Canning St North Melbourne, which was transacted on behalf of Woolworths for in excess of $30 million.
This will be one of the biggest developments in the inner northern suburbs, with the site having a permit for more than 300 apartments, a full line Woolworths supermarket and 15 specialty shops.
“We are witnessing a trend for developers to target the northern suburbs of Melbourne, where sites are unaffected by the new planning changes in the Capital City Zone, and there is the added benefit of proximity to the University of Melbourne and other amenity.
“This is particularly the case when it comes to Chinese developers who are continuing to demonstrate they are not wedded to the CBD for large projects – unlike the majority of Malaysian and Singaporean developers.
“These deals clearly represent that Chinese developers do not buy in to the mooted oversupply and that many are commenting that they see Melbourne as more consistence and stable than those apartment markets in Queensland and New South Wales,” Wizel said.
Australian Property Journal
