A local developer has fought off significant local and offshore competition to acquire a combined 1,394sqm site in Camberwell for $3,925,000.
CBRE’s Victorian Development Sites team of Julian White, Josh Rutman, Scott Orchard and Chao Zhang negotiated the sale of the two combined residential dwellings at 1052-1054 Toorak Road, which transacted for the first time in 40 years.
Mr White said the site was hotly contested, with bidders vying for a chance to obtain the prominent corner site in front of a crowd in excess of 80 attendees at auction.
“Developers are currently looking to take advantage of the imbalance of apartment demand versus supply in the eastern suburbs, with the site receiving considerable market attention for its favourable general residential zoning.”
The sale price translates to a rate of nearly $3,000 per sqm - a strong result Mr White linked to continued developer confidence in Melbourne’s suburban pre-sale apartment market.
“We are witnessing an increasing acceptance of apartment living in suburban markets, particularly in prestigious suburbs such as Camberwell where medium house prices of $2 million plus inhibit freestanding home ownership. Apartments are leading as a viable alternative as they offer all the access to amenity for a fraction of the cost,” said Mr White.
“To capitalise on developer demand for strategic sites that can be redeveloped into boutique apartment offerings, group selling is becoming increasingly popular. More homeowners are looking to partner with neighbours in order to sell their homes for significantly higher returns than what can be achieved individually,” Mr White added.
The Toorak Road sale follow a series of recent group selling transactions by CBRE Victorian Development Sites has negotiated recently, including:
Neighbours/ number of sites:
1052-1054 Toorak Road Camberwell
462-464 Dandenong Road, Caulfield
43-45 Victoria Street, Windsor
1455 High Street & 2a Scott Grove, Glen Iris
585-589 Burke Road, Camberwell
The arrival of the Chinese developers, who over the past 18 months have been actively targeting the suburbs, is another factor that has been identified by CBRE as significantly impacting the Eastern Suburbs market.
“This phenomenon is being driven by the affiliation new Chinese developers feel towards these suburbs, through family living in Australia,” said Mr White.
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