Another record sale has been achieved in Melbourne’s Box Hill, after a block of adjoining offices was snapped up for $10.85 million.
CBRE sold the 1,220sqm landholding at 25-29 Ellingworth Parade, which comprises three office buildings, via an Expression of Interest campaign.
CBRE Director Scott Orchard said the sale reflected the strongest land rate achieved this year in Box Hill for a development site.
“The Box Hill activity center represents a range of different development opportunities given the differing height potential in various locations. However, the Ellingworth Parade sale of approximately $9,000sqm on land represents the strongest land rate achieved in Box Hill when analysed in context to the height potential.”
Mr Orchard noted that appetite for commercial office properties in Box Hill is also incredibly healthy: “The 25-29 Ellingworth Parade sale is the second recent office sale, with 18-20 Prospect Street also transacting to a local Chinese buyer.”
CBRE's Chao Zhang, who has been selling development sites in the City of Whitehorse since 2015, said the success of well-known Chinese and local developers in the area is fueling confidence among buyers.
“The Asian demographic is a significant catalyst for the continued interest by local and new off-shore Asian developers in the area,” said Mr Zhang.
“Box Hill is the centre piece of the City of Whitehorse in Melbourne’s eastern suburbs. It is also dubbed by many as one of the most progressive councils, as it has been working with the local and international developers behind many landmark developments.”
There are approximately 1,161 apartments under construction in Box Hill, and four more projects being built or currently permitted, joining the circa 30-storey Whitehorse Towers development in the central activity center.
CBRE’s David Minty added while the field of bids accumulated was mostly from Asian buyers, there was still strong interest from local buyers.
“Local buyers see that the future of the Box Hill market is exceptionally strong, and therefore it is a terrific location to speculate, or secure landholdings with income or improvements to capitalise on in the future,” Mr Minty said.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.