Malaysian Developer Snaps Up St Kilda Road Site

A listed Malaysian developer has acquired a 2,540sq m corner property on St Kilda Road for more than $16 million.

The site, a Habitat HQ backpacker facility at 333 St Kilda Road, has a six level development limit.

The CBRE Victorian development sites team of Julian White, David Minty, Chao Zhang and Josh Rutman negotiated the sale, which translates to approximately $200,000 per unit.

“Results like this demonstrate there is a groundswell of interest in quality development opportunities, with the sale representing our fifth development site transaction in the past week,” Minty said.

The sale follows increased interest in the St Kilda residential market as developments such as The Gatwick, which is currently on channel nine’s The Block, nears completion.

The property, in tightly held St Kilda Road, attracted interest from local developers.

Only four properties have changed hands in the past two years in the stretch between Carlisle Street and the Junction.

Zhang noted the sale also highlights a resurgence in Asian buyer interest in Melbourne development sites.

“Six of our past seven site sales have involved Asian developers, who are looking at macro factors such as Melbourne’s strong population growth when pursuing new acquisitions,” Zhang said.

The deal follows a busy two months for CBRE Melbourne agents who have sold an additional 19 assets to Asian-backed investors for a total of $201.6 million in this period.