While areas of Melbourne may face a rough period in the near future as the city’s apartment market continues to grow, developers are still willing to bank on its residential market.
Real estate services firm CBRE has recently sold two major development sites in Melbourne, following strong buyer interest due to the ongoing performance of the residential sector.
One of the sites sold was a 1,405 square metre parcel in the south-eastern suburb of Bentleigh that came with approved planning for 24 residential units over three levels.
The site was bought by a foreign developer for $3.01m at auction.
“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,” CBRE's Ed Wright said.
Figures from Domain Group
show Melbourne’s median apartment price rose 3.5% to $439,113 in the June quarter.
In the 12 months to June, prices rose 2.7%.
A 977 square metre facility currently home to a car wash in the eastern suburb of Blackburn was also sold by CBRE for $1.9m.
The property sold at auction and attracted enquiries from more than 150 buyers, with its popularity increasing do to it already producing income as well as being a future development site.
“With a strong holding income, this property represented an attractive investment opportunity in Melbourne's eastern corridor,” 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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