An offshore developer has acquired a Newport site with extensive residential development potential for in excess of $6 million.
Ed Wright, Julian White and Jamus Campbell of CBRE Victorian Development Sites negotiated the sale. The site, which has development approval for 24 townhouses and 15 garden villas, was transacted via a strategic off-market process, in which the agents utilised their extensive database to achieve the most beneficial result for the vendor.
The property at 6 Paine Street is in a sought after residential area, only seven kilometres south-west of Melbourne’s CBD and within walking distance of the historic Williamstown area.
ALSO SEE: Gurner's New York-Style Apartment Project Sells Out
Mr Wright said the site’s positioning within a proven residential market, approved planning permit, and close proximity to public transportation, had ensured that the sales campaign was fiercely competitive.
“The site attracted strong interest from local and offshore buyers, with both groups recognising the significant affordability issues currently impacting Melbourne’s suburbs,” Mr Wright said.
“These buyers are recognising the opportunity to capitalise on the margin between house and apartment prices to seek potential development projects outside of traditional Melbourne apartment areas such as Southbank, St Kilda Road, South Yarra, Richmond and Prahran.”
Victorian Development Sites Senior Director Mark Wizel said the sale represented a growing trend for offshore capital to move away from the city and into the suburbs, with Asian investors particularly able to take advantage of the falling Australian dollar.
“We are continuing to experience strong demand for permitted development sites in suburban locations, including a 19 per cent increase in demand from offshore parties. The consistent sales of development sites outside the CBD in the $5m+price range further demonstrate the strength and depth of the current market,” Mr Wizel said.