A 3,000sqm landholding mooted for a townhouse development in Melbourne’s east has sold for $4,888,888 at a hotly contested auction.
CBRE’s Victorian Development Sites team of Chao Zhang, Julian White and David Minty managed the auction process for the 15-17 Herlihys Road property in Templestowe Lower, which has permit approval for 14 townhouses.
The auction attracted a crowd of more than 80 onlookers, with seven bidders – including five Chinese prospective buyers – vying for the property after an opening bid of $3.5 million.
Mr White said the result highlighted the ongoing strength of demand for townhouse development sites amid a rapidly rising median house price, and subsequent preference to freestanding dwelling alternatives.
“Many developers have recognised this and are competing for appropriate development opportunities. They see auction clearance rates of nearly 80% every weekend and this is providing a lot of confidence,” Mr White said.
Mr Zhang said the sale came at a time of unprecedented demand from Asian buyers seeking opportunities in Melbourne’s property market.
“Over the past two months, we have witnessed strong levels of demand from the Asian market, with 13 of our past 16 development site sales being to Chinese buyers,” Mr Zhang said.
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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.
