Residential developers are continuing to pay a premium for suburban infill development sites that can accommodate townhouse developments – as recently demonstrated by the sale of a Broadmeadows industrial site for $11million.
The 2-32 King William Street land holding, known as Meadow Park, totals 32,698 sqm and was purchased by Rendition Homes.
Mr White said Broadmeadows was an attractive location for investors, due to its consistent capital growth in median house price since 2012, with an almost 30% increase over the past 18 months.
“Buyers are searching for affordable options, due to straining affordability throughout the Melbourne residential market. Broadmeadows currently holds the lowest median house price of any suburb within 15 kilometres of the Melbourne CBD, despite its median growth from $380,000 to $481,000 over the past 12 months,” said Mr White.
“Due to this demand from buyers, developers continue to search for suburban infill opportunities that can satisfy demand for quality living spaces and offer residences under the median house price. Ultimately, townhouses are the perfect fit.”
Mr Orchard went on to say the site’s mixed-use zoning and development plan approval for an apartment and commercial development further encouraged interest from a wide-range of developers.
Mr Orchard added: “What is really fascinating about recent suburban infill deals is the spread between prominent local developers and Chinese developers. What we are seeing are signs of a strong market as major local players are actively participating - this is not a market just driven by Asian investor demand.”
Meadow Park forms part of the Broadmeadows Activities Area Structure Plan. The plan envisages the creation of a large-scale, central hub for housing, employment, services and infrastructure to support the suburb’s growth.
Mr Wayne Fazzolari from Rendition Homes said; “The Rendition Group are very pleased with the Broadmeadows acquisition and we look forward to working with the Hume City Council and the local Community. We plan to offer families a range of affordable homes, making full use of the inner metropolitan location, local amenities and infrastructure. This purchase together with brand new display homes at Wollert and Werribee are integral parts of our strategy and commitment for providing affordable housing to the Melbourne market.”
Similar infill development sites that have transacted recently include:
500 Burwood Highway, Vermont South
Hong Sie International
646 Nepean Highway, Mt Martha
Residential Communities Australia
2-6 Walter Street, Hadfield
855-869 Ferntree Gully Road, Wheelers Hill
615 Warrigal Road, Ashwood
Beachly Street, Braybrook
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