A Chinese development company has snapped up a sizeable mixed-use site in Clayton South for $10,980,000 in a move that demonstrates the current offshore demand for larger sized landholdings with development upside.
CBRE’s Victorian Development Sites team negotiated the sale of 1380-1388 Centre Road, Clayton South, via a public expressions of interest campaign on behalf of Elco Foods.
The 6,378sqm site, which houses an industrial building utilised by major importer Elco Foods, benefits from strategic location in Clayton South - which is rapidly becoming a popular location for the local Chinese community, underpinned by retail amenities and proximity to Monash University and Monash Medical Centre.
The purchased site is close to Monash University.
The sale price represents a land rate of $1,722 per sqm – a strong result agent Mr White linked to growing demand for strategically located landholdings capable of townhouse or mixed-use development.
“Strong interest was received from a range of local and offshore groups, with nine offers at the conclusion of the campaign, five of which were from Asian parties,” Mr White said.
“Larger scale townhouse development opportunities are extremely popular in the market at present, driven by the big four banks’ willingness to provide funding for this sector and the rapid growth in median house prices in the middle and outer suburbs placing affordability pressures on free standing dwellings - making townhouses a realistic option for buyers looking to enter the housing market.”
Demonstrating the confidence developers currently have in Melbourne’s suburban market, major developer Cedar Woods is completing a significant townhouse development called Jackson Green in Clayton South. Furthermore, Abacus Property Group has recently sold a major landholding on Browns Road for $51.5 million to a Chinese buyer.
“The evolution of Asian capital moving into suburban Melbourne development projects is now in full swing, with these buyers no longer just targeting the Melbourne CBD as the preferred destination for developments,” added Mr Wizel.
Director of Elco Foods Emmanuel Kotis was thrilled with the result, stating; “We had a valuation completed in May 2015 at $4.9 million and have now sold the property for more than double that at a record land rate for the Clayton/Clayton South area.”