The 2,540sqm, corner property has a six-level development limit. Based on indicative architectural schemes prepared during the sales campaign, the sale price translates to approximately $200,000 per unit site.
“Results like this demonstrate there is a groundswell of interest in quality development opportunities, with the sale representing our 5th development site transaction in the past week,” Mr Minty said.
The purchaser fought off interest from several local developers to acquire the site, which was offered for sale on behalf of the locally-based family operators of Habitat HQ.
The property is situated in a tightly held area of St Kilda Road, with only four properties having transacted in the past two years in the stretch between Carlisle Street and the Junction.
The sale follows heighted interest in the St Kilda residential market as developments such as The Gatwick, which is currently featuring on The Block, near completion.
CBRE’s Chao Zhang said the transaction also highlighted a resurgence in Asian buyer interest in Melbourne development sites.
“Six of our past seven site sales have involved Asian developers, who are looking at macro factors such as Melbourne’s strong population growth when pursuing new acquisitions,” Mr Zhang said.
“In the case of St Kilda, the area’s outstanding access to public transport, retail amenity and proximity to the bay and the Melbourne CBD, underpinned developer confidence in the appeal of an apartment project to both investors and owner occupiers.”
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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.