Melbourne, 09 May 2016 – A local investor has snapped up a heritage building in Oakleigh for $1.5 million, demonstrating the current strength in the market for well positioned properties with development upside.
Located at 1527 Dandenong Road, the 369sqm site offers high profile corner positioning with onsite parking. The property was originally occupied by ES&A Bank, built during the inter-war period. The building’s red-brick façade and original bank vault was impacted with a heritage overlay, significantly affecting the development potential of the corner site.
CBRE’s Ed Wright, Sandro Peluso and Chao Zhang negotiated the sale on behalf of the local vendor via an auction campaign.
The sale price represented a land rate of $4,065 per sqm – a strong result Mr Zhang attributed to strong buyer demand for well-located commercial 1 zoned properties.
“Despite the site’s development restrictions given the heritage building and lack of permits, the campaign still received strong interest due to the current investor confidence in the Melbourne market.”
“The property’s strong sale result is reflective of the recent developer confidence in Oakleigh, where a 9,686sqm site, nearby1527 Dandenong Road, was sold to an offshore developer for $28.25m late last year by the CBRE Victorian Development sites team,” said Mr Zhang.
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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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.
