Developer secures Armadale site under the hammer for 491m
Developer secures Armadale site under the hammer for $4.91m
| 15 December 2016
A Melbourne-based developer has swooped on a 1,263sqm parcel in the rapidly growing apartment market of Armadale for $4.91 million at auction.
Located at 551 and 553 Dandenong Road, the 1,263sqm parcel comprises two homes across separate titles – offering potential to deliver a boutique apartment project.
CBRE’s Victorian Development Sites team managed the sale campaign, which involved an onsite auction attracting more than 80 attendees.
Six bidders competed aggressively for the property, with a Melbourne-based developer overcoming fierce interest from offshore buyers to secure the site.
CBRE’s Julian White, who negotiated the sale in conjunction with fellow agents David Minty, Nathan Mufale and Chao Zhang, said the strong result highlighted ongoing demand for development opportunities across Melbourne.
“Despite the main road location, the sheer volume of enquiry indicates the demand that is retained in the market for good quality development opportunities from a range of local and offshore developers. This is being driven by a strong underlying residential housing market, which is consistently achieving an auction clearance rate of close to 80% at present,” Mr White said.
Mr Mufale said Armadale’s apartment market growth was also a factor underpinning the sale.
“Buyers have really resonated with the Armadale location, which has proven to be an incredibly successful apartment market over many years - most notably for boutique residential projects that cater to owner occupiers.”
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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.