Melbourne, 23 April 2015 –A local buyer has acquired an Abbotsford site with significant development potential for $13.001million.
The 2,171sqm dual fronted site, located at 247-259 Johnston Street, benefits from a prime location just 2kms from the Melbourne CBD, convenient access to public transportation, significant short term income, and two street frontages to Johnston Street. The site is currently unpermitted.
The property sold following a competitive Expressions of Interest process, which attracted strong interest from prominent offshore and local developers.
Mark Wizel, Julian White and Jamus Campbell of CBRE’s Victorian Development Site team, in conjunction with Paul O’Sullivan from Lemon Baxter, negotiated the sale.
Mr Wizel said local developers were undeterred by any planning uncertainty attributed to the lack of planning permit, and bid strongly based on the confidence they had in achieving significant height on this property.
“Developers of sites such as these are willing to sacrifice some profit margin in their feasibilities, on the knowledge that they can sell the apartment product quickly and at high rates,” said Mr. Wizel.
“We are currently seeing a high volume of apartment sales generating up to $10,000/sqm in this location, which is unsurprising when high median inner city house prices are taken into consideration. Good quality apartment accommodation is an ideal option for those who can’t afford houses in the area, particularly when you consider the neighboring suburb of Kew has a median house price in excess of $1,800,000.”
“The high volume of apartment sales, coupled with the increased support for development projects from the big four banks and the continued population growth of inner city Melbourne, are instilling a lot of confidence in the industry and contributed to the competitive sale,” Mr Wizel said.
This sale follows successful campaigns of other development sites by CBRE Victorian Development Sites in recent weeks including 55-65 Railway Road, Blackburn, 116-118 Grange Road, Carnegie and 757 Station Street, Box Hill.
Mr Wizel said CBRE’s Victorian Development Sites team continues to experience strong demand for suburban sites with permits, including a 19% increase in demand from offshore parties.
For Australian/international news or global stories, follow us on Twitter.
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.