Developer Jeff Xu’s Golden Age Group has snapped up a large site at Glen Waverley in Melbourne’s east for around $23 million.
The 16,470sq m site at 583 Ferntree Gully Road has a 161-metre street frontage and is currently home to an early childhood education centre run by the vendor, charity Bestchance, which will continue to provide childcare services from the retained portion of the site.
Located between the Monash Freeway and Springvale Road, and diagonally opposite Brandon Park Shopping Centre, the site is zoned general residential.
CBRE investments director Mark Wizel, who managed the expressions of interest campaign with Julian White and Chao Zhang along with Vinci Carbone Property, said despite the current concerns around Covid-19, the result was not a surprise.
“This was an excellent result for both the vendor and the purchaser in the most uncertain market we have ever seen.
“What we do know is that there is a significantly large group of developers looking at new opportunities—with the knowledge that underlying fundamentals including population growth will ultimately drive demand for new product,” Wizel said.
Twelve prospective purchasers vied for the site, with drawcards including development potential, as well as its location in one of Melbourne’s most dynamic residential growth zones, which Wizel said has experienced a 16 per cent surge in the median house and unit price over the 12 months to February.
Wizel said the Glen Waverley sale is a sign of commercial property market resilience even in the context of the global health crisis.
“How much we can take from each sale as a guide to the future is really unknown, but given the very good response to this sale we may see a surprising degree of activity from developers in acquiring sites in preparation for an ‘inevitable’ upturn.’’
Golden Age Group declined to comment on the sale.
The group said it has recorded more than $10 million in sales for the project in the past week.
Golden Age also recently completed work on “Australia’s slimmest tower”, the 198-metre inner-city skyscraper known as Collins House, in partnership with Deague Group.
The Melbourne-based developer purchased a $40 million office building at 130 Little Collins Street last year, and also has plans for a $450 million Chinatown in Melbourne's Box Hill along with a 264-room hotel in Sydney's Surry Hills.