The property sold to a Chinese family at a price of $8,010,000 after intense competition for the site from a mix of local and Asia-based developers.
Savills Melbourne has just finalised the sale of a development site in prestigious Hawthorn East, a day after the close of an Expression of Interest campaign.
The property at 11-15 Mayston Street, Hawthorn East comprises a 1,680 square metre site zoned Commercial 1 and currently utilised as three separate showrooms. The property has the benefit of a recently issued planning permit for a Hayball designed project comprising 33 apartments and 4 townhouses.
According to Savills Clinton Baxter, who brokered the deal with colleagues Jesse Radisich and Benson Zhou, the property sold to a Chinese family at a price of $8,010,000 after intense competition for the site from a mix of local and Asia-based developers.
Mr Baxter said that the property was extremely attractive to the development market due to the high local amenity and prestige of the location, striking Hayball design for a boutique development, plus existing holding income from long standing tenants.
“The property was purchased by a Chinese family as a long term strategic land bank at a passing yield of just 1.3%, and at a land rate of $4,800 per square metre of land,” Mr Baxter said.
Mr Radisich said that “the leafy blue ribbon suburbs of Camberwell, Hawthorn, Malvern and Kew remain at the top of the list for developers, with especially intense competition for boutique developments of sub 50 apartments that allow speed of delivery to the market and easy of funding through the local banks.”
Mr Zhou said that Chinese investors are desperately seeking all forms of property in eastern suburban locations stretching from the CBD right through to Box Hill.
Learn more about Savills Melbourne CBD and Metropolitan Sales team.