Mornington Peninsula’s property market continues to gain momentum, with a Sorrento commercial freehold recently selling for $3.71 million under the hammer – more than $1.31 million over reserve.
More than 300 people attended the highly anticipated auction of 157-163 Ocean Beach Road, with a total of 68 bids helping achieve a new record land rate of $6,700 per square metre and yield of 2.6%.
The 554sqm landholding comprises two freestanding commercial buildings and is strategically positioned adjoining a council car park.
CBRE’s Sandro Peluso, who negotiated the deal in conjunction with Rorey James, Mark Wizel and Bianca Butterworth, said the result highlighted the ongoing strength of Mornington Peninsula’s property market.
“2016 was a hugely successful year for Mornington Peninsula’s property market and this sale highlights the huge untapped demand that still exists,” Mr Peluso said.
“We are thrilled to have been able to achieve such an outstanding result for our vendor whose decision to sell in the current market has certainly paid off.”
Mr James said the deal also highlighted strengthening offshore interest in the market.
“What is also interesting is the heightened interest from offshore groups to purchase along the Mornington Peninsula. When comparing our auction in Sorrento on the Labor Day weekend in 2016 against 2017, enquiry from these international groups has jumped 39%, with the Peninsula being one of the most in demand areas across Victoria,” Mr James said.
The sale follows a series of recent transactions in Mornington Peninsula, including the sale of a Mitre 10 Hardware store earmarked for future development at 80-90 Ocean Beach Road in Sorrento for $11.465 million. The sale reflected a rate of nearly $4,500 per square metre, with the property acquired by a prominent Melbourne based high net worth private investor.
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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 2016 revenue). The company has more than 75,000 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.