Despite ongoing fears of apartment oversupply in inner-city Melbourne, a local developer has snapped up a significant site with architectural feasibility for 84 apartments.
The 1,237-square-metre site at 37-47 Thistlethwaite Street was sold for $7,525,000 after strong interest from multiple bidders.
The property has no permit in place, but has the benefit of an eight-level height limit, three street frontages and an architectural feasibility for 84 apartments, according to Hamish Burgess, associate director, development sites at Colliers International, Melbourne CBD.
Oversupply concerns continue in inner-Melbourne, particularly around the Southbank precinct, but Colliers contends the area still has solid investment fundamentals.
“We are continuing to see strong confidence in the South Melbourne area from developers who are attracted to its convenient inner-city location and strong median house prices,” Mr Burgess said.
“Plot changes in the Melbourne CBD have also put further supply pressure on ‘developable’ land, making fringe precincts such as Fishermans Bend and South Melbourne attractive alternatives.”
Trent Hobart, director, development sites, said interest in Fishermens Bend was going from strength to strength on the nacl of a number of projects in the precinct achieving strong pre-sales with encouraging sales rates.
“Melbourne’s city fringe, and more specifically South Melbourne and Fishermans Bend, has seen significant capital growth in the past two to five years and as such vendors are seeing this as a window of opportunity to capitalise on favourable selling conditions, where demand continues to outweigh supply,” he said.
The 37-47 Thistlethwaite Street sale comes after the sale of nearby 15-25, which a Chinese developer secured for $8 million.
“These sales are just the latest in a flurry of activity we are witnessing in this area as it becomes increasingly sought after,” Mr Hobart said.