Developer makes $9m play for neighbouring Clovelly homes
Sydney-based developer, Barua Group, has splashed $9 million on two neighbouring homes in the beachside suburb of Clovelly – setting a new record for the area.
23 May 2019
Located at 31 & 33 Melrose Parade, the residential properties are zoned Medium Density and span a combined site area of 959sqm.
The properties, which have a 12m development height limit, are slated to accommodate seven three-bedroom apartments – reflecting a record individual unit price of $1.285 million.
CBRE’s Nicholas Heaton, Gemma Isgro and Paul Grasso managed the competitive sales campaign, which attracted the interest of more than 460 developers. The sale reflected a 50% uplift in value from the properties’ individual value of $3 million, respectively.
Mr Heaton said the strong interest received highlighted the growing demand for boutique development projects in Sydney’s eastern suburbs.
“Developers who have been traditionally focused on larger projects in the western suburbs are now looking to undertake smaller, more boutique projects in the east – capitalising on the growing number of ‘downsizers’ looking to buy apartments in the area,” Mr Heaton said.
“Growing demand for this lifestyle change, coupled with the limited availability of suitable development sites, is driving up both unit prices and land value.”
Ms Isgro said the rarity of the offering underpinned strong buyer interest from local, domestic and offshore developers.
“It is rare to find development sites such as this in Sydney’s sought-after eastern suburbs that are positioned close to the coast line and offer ocean views,” Ms Isgro said.
The next development site to test the market will be 6-8 Richmond Road in Rose Bay. The 664sqm site has been earmarked for a development accommodating six luxury three-bedroom apartments, rooftop terrace and commercial space (subject to DA). The site is being offered for sale via Expressions of Interest closing June 12.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.