Melbourne market attracting developer interest



29 Jasper Road, Bentleigh

The continued strength of Melbourne’s residential market has underpinned the sale of two development site sales for close to $5 million.

An offshore developer has secured two residential lots at 27-29 Jasper Road in Bentleigh for $3.01 million at auction.

The 1,405-square-metre property was sold with approved planning for 24 residential units over three levels — reflecting a unit rate of $125,000.

CBRE’s Ed Wright, who sold the property in conjunction with Lewis Tong and Chao Zhang, said the property’s potential to accommodate an apartment project was a major selling point.

“The opportunity to secure a presence in Melbourne’s strongly performing residential market attracted strong interest, with this Bentleigh property positioned amongst established residences, thriving retail and surrounding lifestyle amenity,” Mr Wright said.

Further demonstrating the demand for development sites, CBRE recently sold a car wash facility in Blackburn for $1.925 million at auction.

The 977-square-metre property at 119 Surrey Road attracted strong buyer interest, with more than 150 buyer enquiries and the sale result reflecting a yield of 2.96 per cent.

Mr Wright, who managed the sale in conjunction with fellow agents Julian White and Sandro Paluso, said the property’s strong covenant was a key factor underpinning the sale.

“With a strong holding income, this property represented an attractive investment opportunity in Melbourne’s eastern corridor,” Mr Wright said.

“The continued strength of the Melbourne residential market, particularly in comparison to the current volatility being witnessed in the Sydney market, is making Melbourne the developers’ location of choice.”

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