CITY FRINGE SITE SETS A NEW PRICE BENCHMARK

Written on the 5 April 2016 by Nick Nichols

CITY FRINGE SITE SETS A NEW PRICE BENCHMARK

THE pace of capital growth for development sites continues unabated following a record $14.6 million deal in West Melbourne.

The property, located at 407 King Street, has been sold to an Asian developer for $15,800 per square metre, a significant premium to average sales in the area of about $11,000 per square metre.

The deal has also snared the seller a gross profit on the investment of more than $7.5 million in just three years. The property last changed hands for $7.05 million in 2013.

Daniel Wolman, who was among a team of Colliers International agents who negotiated the sale, says the prized site was hotly contested due to its prime fringe location near Flagstaff Gardens and the $450 million Queen Victoria Market precinct renewal project.

"This asset generated global interest from all buyer categories, from owner occupiers and investors to developers," says Wolman.

"Many hungry developers and other buyers were left disappointed to miss out. 

"The intense appetite for development sites in Melbourne, and particularly this pocket to the west of the CBD, has shown no signs of abating.

"Over the last 12 months, we have facilitated the sale of 420 Spencer Street for $29 million, 383 King Street for $52 million, 511-525 King Street for $10.5 million and now 407 King Street."

The deal comes on the back of Colliers International negotiating the sale of 11 Hancock Street in Southbank for $3.1 million to a local developer, in conjunction with Raff De Luise of ICR Property.

"This sale represented a rare and highly sought after opportunity to acquire a magnificent development site, with a permit for a landmark residential tower, within Melbourne's Crown Casino entertainment precinct," says Wolman.

"It is one of the last sites in Melbourne with a permit for a high rise tower, to 33 levels, and high-profile corner land holdings such as this are also in short supply.

"We fielded significant interest in what was a very affordable development site on the cusp of Melbourne's popular city fringe."

The 168sqm site was offered with approval for the construction of a 33-floor, 58-apartment tower.

 


Author: Nick Nichols

Latest News

HARVEY NORMAN HITS OUT AT 'FALSE NEWS' OF ASIC INVESTIGATION

RETAIL giant Harvey Norman (ASX: HVN) has vehemently rejected reports its accounts are under investigation by ASIC, s...

RARE GOOD NEWS FOR SLATER AND GORDON AS ASIC CLOSES INVESTIGATION

ASIC has cleared Slater and Gordon of deliberately falsifying its accounts after a three-month investigation.

It s...

ADELAIDE DIGITAL MARKETING GURUS CHANGING THE FACE OF ONLINE RETAILING

Frank Grasso, CEO of Adelaide based Dynamic Creative, believes his company's new software will revolutionise Adwo...

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter