Long-term owners of a 9-acre landholding in the south-eastern growth corridor of Melbourne have struck gold, selling 65 Mary Street, Officer for $11.26m having paid just $885,000 for it in 2005.
The 36,000sq m property was offered for sale by selling agents Savills and attracted a huge response from the market as residential developers clamber to secure prime development land to meet the pent-up demand for housing on Melbourne’s outskirts. Following a highly competitive bidding process, the property was sold unconditionally to Perth-based Satterley, one of Australia’s largest residential land developers.
The sale was negotiated by Clinton Baxter, Mark Stafford and Julian Heatherich of Savills at the conclusion of an Expression of Interest process.
According to Clinton Baxter, State Director at Savills, the market for ready-to-develop land in the growth corridors of Melbourne now exceeds the previous peak of 2017 with developers unable to supply residential lots into the market quickly enough to meet demand driven by ultra-low interest rates and government stimulus incentives such as HomeBuilder.
“The property sold on a land rate of $1,251,000 / acre, and is expected to accommodate about 110 dwellings once fully developed” he said. “The sale price is a spectacular 1300% increase on the vendor’s original purchase price of $885,000 in 2005, demonstrating the incredible value that can be created by strategic land purchases in growth locations.”
“Whilst the vendor family had a range of compelling offers to select from, they felt most comfortable to sell to Satterley who has been busy developing its highly successful 1700 dwelling Arcadia estate in Officer.”
Learn more about Savills Residential Site Sales.