Melbourne, 08 October 2013-K7 Developments Pty Ltd has acquired a prominent development site in the Melbourne suburb of Surrey Hills for $2.75 million.
Located at 629 Canterbury Road, the 1,009sqm property features a two-storey Victorian style building and includes planning approval for a mixed-use development, comprising two commercial offices, 28 residential apartments and four townhouses.
CBRE’s Paul Tzamalis and Alex Zent, who marketed the property via a Public Expression of Interest campaign on behalf of the owner-occupier MDG Advertising, said its position and development potential was a key selling factor.
“Highly sought after sites in suburbs such as Kew, Hawthorn, Camberwell, Surrey Hills, Balwyn and Mont Albert are attracting strong interest from developers looking to undertake smaller residential developments with faster build schedules,” Mr Tzamalis said.
“As it becomes more difficult to fund higher density projects, developers are looking to smaller-scale opportunities, with areas like Surrey Hills particularly attractive due to the typically higher sale rate achieved per metre.”
Mr Zent said two other residential developments currently underway in Surrey Hills were further evidence of the area’s rising popularity among consumers.
Seventeen apartments are under construction at 160 Union Road nearby, while 23 apartments are being built at 619 Canterbury Road.
“The average house prices of circa $1 million in Surrey Hills mean a large percentage of younger buyers cannot afford the existing housing stock and are openly looking at suburban apartment developments, such as this, as an affordable option,” Mr Zent said.
“Another key buyer in the suburban market is retiree aged couples, who are looking for low maintenance living as they downsize the family home.”
Surrey Hills is situated 12km from the Melbourne CBD, within close proximity to the Union and Mailing roads retail strips, Box Hill Hospital, reputable private schools and public transport links.
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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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 atwww.cbre.com.au.