A locally based Chinese buyer has snapped up a landmark Brunswick development site for approximately $30 million.
The sale of the 6,320sqm development offering at 699 Park Street, Brunswick was negotiated by CBRE’s Victorian Development Sites team of Mark Wizel, Julian White and Sandro Peluso, in conjunction with Colliers International’s Trent Hobart and Bryson Cameron.
It followed a highly competitive international Expressions of Interest campaign.
The property is subject to the C134 Brunswick Activity Centre planning amendment, which is currently in front of the Victorian Planning Minister Richard Wynne.
With the relevant approvals this would provide for a median density mixed use development, along with a rezoning of the site – allowing for views over Princes Park and the Melbourne CBD.
Local and offshore developers contested the offering, given the site’s development potential and potential views over the Melbourne CBD.
“Eighteen Expressions of Interest were received, following aggressive bidding from a range of local and offshore buyers,” CBRE Senior Director Mark Wizel said.
“We are continuing to witness strong demand from Chinese buyers, keen to secure a foothold in the Melbourne market. Whilst government measures, including additional taxation for offshore buyers and erratic planning measures, have the potential to deter offshore buyers, we are still fielding strong demand for well-located development sites and investments.”
CBRE Victorian Development Sites team Associate Director Julian White said that was extremely encouraging, particularly for Melbourne’s accommodation sector.
“Apartment living is the way of the future. 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,” Mr White said.
He added that the inner northern suburbs of Melbourne were seeing exponential demand for well located apartment projects.
CBRE recently completed the sale of 111 Canning Street, North Melbourne, which was transacted on behalf of Woolworths for in excess of $30 million. The site has a permit for more than 300 apartments, a full line Woolworths supermarket and 15 specialty shops.