A permitted Prahran corner development site recently sold under the hammer for $5.25 million to a prominent local developer, who beat off strong bidding from both local and offshore parties.
Mark Wizel, Julian White and Scott Orchard of CBRE’s Victorian Development Sites team managed the highly competitive auction process which saw in excess of 120 enquiries received throughout the campaign and more than 100 people in attendance at auction.
“Given the strong interest received from Chinese developers throughout the sale process, it is clear that the current uncertainty in the Chinese stock market is not having an impact on their desire to acquire quality real estate investments in Australia,” Mr Wizel stated.
Located at 283-289 High Street, the 537sqm site sold with a planning permit in place for 31 apartments and four ground floor apartments. The sale price represented a rate of $9,700/sqm over the land area and $150,000/unit, which are clear records for the High Street precinct.
The positioning within one of Melbourne’s best apartment locations attracted many local and offshore developers to the site.
“When developers have confidence in the ability to quickly presell apartment product they bid aggressively,” said Mr White, Associate Director of CBRE Victorian Development Sites.
Mr White said CBRE Victorian Development Sites are not witnessing any caution from developers in relation to the apartment oversupply that is regularly being reported as a concern from the market.
“Developers are investing significant amounts of capital into the residential market and their confidence gives us confidence. When you look at population growth statistics, this is unsurprising,” added Mr White.