A Chinese group has acquired a South Melbourne development site in a deal valued at $15,070,000.
The deal was worth more than $5 million above what the vendor paid for the 1,441sqm property only three years prior.
CBRE’s Victorian Development Sites team of Mark Wizel, Josh Rutman and Julian White negotiated the sale of 41-49 Bank Street, which attracted significant interest from both offshore developers and a number of prominent local groups.
Mr Wizel said the buyer recognised the quality of the precinct and fought off strong competition in order to secure its first major project in Melbourne.
“Chinese developers continue to actively pursue development opportunities in the city fringe and suburban locations and this transaction is a clear sign of the maturity of Chinese demand," he said.
“We anticipate continued strong demand from Chinese developers throughout 2016, irrespective of current concerns with the Chinese stock market, which will drive positive outcomes including jobs in construction, planning and design."The site offers dual street frontage totalling more than 60 metres, ideal location within walking distance of Melbourne's arts, sporting and entertainment precincts and permit approval for a 16 level mixed use development, with existing permitted height above current planning parameters.
Julian White, Associate Director of CBRE’s Victorian Development Sites team, said the continued prominence of Chinese buyers was extremely encouraging, particularly for Melbourne’s accommodation sector.
“Apartment living is the way of the future in Melbourne. The continued high absorption rates of CBD and inner city apartments are a clear sign that the market needs to continue to build more apartments, not slow down development.”