A Melbourne-based developer has paid a speculated $6 million for a 60,000 square metre englobo parcel of land close to EastLink at Keysborough which could potentially accommodate a $100 million industrial estate.
The 275 Perry Road site is situated approximately two kilometres from EastLink and 2.8 kilometres from the Dandenong Bypass, considerably reducing travel times to most parts of Melbourne.
Savills Director Kosta Filinis said the sale was driven by the success of nearby established estates including Frasers Property’s The Key Industrial Park (600 metres north) and Places Victoria’s Dandenong Logis, which have achieved record square metre rates for land sales based on their close proximity to EastLink.
"What we have seen in this region over the last three years is a rapid take up of available industrial land from 55 hectares to 65 hectares per annum including 28 hectares of development sites sold in this Keysborough precinct over the last 12 months," he said.
"That activity has intensified demand for remaining sites especially those within close proximity of EastLink and that was the driver for the vendor offering what was one of the last remaining englobo parcels in the Keybsorough region,’’ Mr Filinis said.
"There is an increasing urgency for well-placed development sites based on a growing confidence in the market and prices are starting to reflect that difference.
"Land close to EastLink is highly sought after with asking rates of as much as $320 a square metre for 1200 square metre lots and that is driven by both the competition for sites and the fact that developers can achieve rents of up to $110 a square metre for brand new office warehouses,’’ Mr Filinis said.
The agents declined to comment on the price.
The vendor was a local private land owner.