Melbourne’s apartment market continues its upward momentum, with a premium site in the Forrest Hill precinct of South Yarra changing hands for $14.6 million – setting a new record for unpermitted sites in the suburb’s most rapidly developing street.
CBRE’s Mark Wizel, Josh Rutman, Julian White and Scott Orchard negotiated the sale of 6-8 Claremont Street, which was offered by way of Public Expressions of Interest, under instruction from transaction managers Nick Moore and Marcus Conabere of real estate advisory firm Urbis.
The 1,030sqm site, currently owned and occupied by the Victorian Aids Council (VAC), is wedged between two major apartment towers and is centrally positioned in the popular Forrest Hill precinct.
The property attracted multiple offers, with a Hong Kong-based purchaser securing the site for $14.6 million.
Mr Rutman said the property’s development potential in one of Melbourne’s most sought-after inner city suburbs was a major drawcard underpinning the sale.
“Despite talk of an apartment oversupply, South Yarra is quickly becoming one of Melbourne’s most successful development precincts, with several projects delivered over the past 10 years by developers such as Fridcorp, Michael Yates, Little Projects and LYZ,” Mr Rutman said.
“As evidenced by this deal, apartment developments in the area have been sold at strong sales rates to a mixture of owner occupiers and investors, both local and offshore. This has been complemented by an up and coming retail precinct, offering a hip and trendy inner city lifestyle.”
Mr Rutman said the Claremont Street sale was further evidence of strengthening confidence levels in the area.
“We have been fortunate to handle the past seven development site transactions in the Forrest Hill precinct, and given the new record land rate achieved it is fair to say that we are now seeing a whole new level of confidence from local and offshore groups, especially off the back of the apartment pre-sale success that many developers are continuing to experience in the precinct,” Mr Rutman explained.
The site, which features substantial existing office improvements, will continue to be occupied by VAC in the short-term, providing a stable income.