Melbourne, 8 April 2015 –A
mainland Chinese group has secured a prominent development site at Blackburn
for $4.6 million.
CBRE’s Victorian Development Sites team
negotiated the unconditional sale of 55-65 Railway Road, Blackburn shortly
after the conclusion of an Expressions of Interest campaign.
The property, which has a permit for
30 apartments and eight shops, is located within 100 metres of Blackburn Railway
The CBRE selling agents Julian White, Ed
Wright and Mark Wizel said the campaign had generated a significant amount of
enquiry and fierce buyer competition.
“Suburban land holdings with permits,
which are close to public transport, are in hot demand at the moment,” Mr White
“Strong interest was received from offshore
buyers as well as a number of local groups, keen to secure projects that can be
delivered quickly to the market to tap into the current owner occupier demand
for end apartment product.”
The deal represents the seventh suburban
Melbourne development site sale to be completed by CBRE since early March 2015
and brings the tally of sales to approximately $93,000,000. The buyer activity
has predominantly involved mainland Chinese groups as per the below.
360 New Street, Brighton
160 Whitehorse Road,
757 Station Street, Box
2 Wests, Road,
12-14 Sheffield Street,
40 Hall Street, Moonee
55-65 Railway Road,
However, MrWizel said both local and
offshore developers were targeting the metropolitan residential development
“Blackburn has a median house price of
nearly $1,000,000. Smart developers, both based locally and offshore, are
recognising this gap between house and apartment prices in locations such as
Blackburn, which not traditionally associated with medium to high density
residential apartment developments. This is increasing the demand for apartment
projects in these locations,” Mr Wizel said.
The latest Blackburn sale also highlighted
the continued trend for Chinese developers to broaden their focus from the Melbourne
CBD to consider mixed use development projects that would appeal to a broad
range of investors and owner occupiers, Mr Wizel said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.