Malaysian developer swoops on St Kilda
A listed Malaysian developer has snapped up the Habitat HQ backpacker’s facility on St Kilda Road in a deal valued at more than $16,000,000.
17 Oct 2018
The CBRE Victorian Development Sites team of Julian White, David Minty, Chao Zhang and Josh Rutman negotiated the sale of the 333 St Kilda Road site, which has been targeted for an apartment development.
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.”For Australian/international news or global stories, follow us on Twitter: @cbreaustralia
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About CBRE Group, Inc.
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