- Following several landholding sales around the state, a major infill property in Melbourne’s south east has been sold unconditionally for $43 million
- The final sale price was $11 million more than the vendor’s reserve, representing a 26 per cent increase between the first and second rounds
- CBRE’s Nathan Mufale says they are experiencing strong demand from developers looking to secure development pipelines in the region
- The sale joins a recent deluge of landholding sales in Melbourne and regional Victoria
A large infill site in Melbourne’s south east has been sold on an unconditional basis for $43 million, following on from multiple landholding deals in the state.
The final sale price was $11 million more than the vendor’s reserve, representing a 26 per cent increase between the first and second rounds.
CBRE Victorian Development Sites brokers David Minty, Nathan Mufale, and JJ Heng sold the site on behalf of a private family through public expressions of interest process.
“The sale price smashes all metrics achieved for a development site sale in Officer, representing a record rate of $3,650,000 per hectare,” Mr Minty said.
Mr Mufale said they are experiencing strong demand from developers looking to secure development pipelines in the region, which is unlikely to be satisfied in a market that is very short on appropriately zoned or earmarked landholdings.
The Officer Precinct Structure Plan (PSP), which allows for 15 houses per net developable hectare, includes the approximately 12.28ha empty land.
“The on-market campaign generated 18 offers from highly competitive private and institutional developers, located both domestically and offshore,” Mr Minty said.
There was stiff competition for the landholding, with seven offers acquired through CBRE’s Asian Services Desk.
As part of the first round of bids, a capital allocation of over $500 million was received, showing the significant level of active capital in the market currently matched with residential construction sites.
The sale joins a recent deluge of landholding sales in Melbourne and regional Victoria.
Last week, Cedar Woods announced that it acquired two sites in Melbourne’s west for a total of $63.5 million, which will add 725 lots to its development pipeline while Mirvac secured a plot of land in the Princess Park district and Developer ID_Land purchased a mixed-use site in Gisborne for $100 million.
The latter recently acquired a 30-hectare site in Cylde North for $70 million, according to the AFR, while Dahua Australia has reportedly bought a 41-hectare site in the same suburb for about $100 million.