A Box Hill development site has been sold off-market to a local development group with Chinese connections for $13.5 million.
The property at 31-35 Prospect Street is a rectangular site of 1,653 square metres backing onto the railway line in central Box Hill, and is currently used as an open air car park generating income of approximately $45,000 per annum.
The property is situated within the “major development precinct” of Box Hill with development height potential of at least 20 levels.
Savills’ Clinton Baxter, who brokered the deal with colleague Nick Peden, said the property sale reflected an extremely strong land rate of $8,166 per square metre.
Baxter said that the site was snapped up by an under bidder following the agency’s recent $12.19 million sale of nearby 15-17 Prospect Street, and the $22.25 million sale of 843 Whitehorse Road.
The property was held by a local private family for decades, after said family originally purchased three consecutive houses in the street long before it was rezoned for commercial use in the 1980s.
[Related reading: The Melbourne of Tomorrow]“We are experiencing unprecedented developer interest in Box Hill as the market seeks to take advantage of the greater height allowances within the Activity Centre and the huge demand for apartment living within walking distance of Box Hill Central Shopping Centre ” Baxter said.
Savills have conveyed the utmost confidence in the suburb's market.
“Based upon current buyer demand we could sell $500 million worth of land in Box Hill if it was available for sale, such is the strength of the market," Baxter said.
He said the location in close proximity to Box Hill Central Shopping Centre and Railway Station, Box Hill Institute and Box Hill Hospital were attributes that lead to the rapid off-market transaction.