Luxury Malvern East apartment site sells for top dollar to local developer
Developers are showing confidence in Melbourne’s premium suburbs as a luxury apartment site in Malvern East trades to an experienced local developer, in a clear indication of the depth of the city’s high-end apartment market.
Transactional activity across the segment continues to be strong, primarily driven by seasoned developers identifying the current market as an opportune time to buy, with a typical flight to quality environment pinning up values for premium residential end products.
The 94 Burke Road, Malvern East property transacted prior to the prescribed Expressions of Interest period for $5,500,000. The campaign was handled by Savills Agents Benson Zhou, Julian Heatherich & Nick Garoni.
The site of 1,136sqm previously traded for $3,900,000 in 2019, representing a 41% value uplift for the vendor in just three years. The property holds a permit for a Ewert Leaf designed project comprising 11 apartments and a total net saleable area of 1,255sqm, resulting in an NSA rate of $4,382 per square metre.
“The volume of interest in the site that developed instantaneously when the campaign hit the market shows the depth in this boutique, luxury segment on the market,” said Benson Zhou, Head of Asia Markets at Savills Australia
The park front element of the site was a key value driver with very few opportunities remaining to develop on the stretch of Burke Road that fronts Central Park.
“The property transacted mid-way through the Expressions of Interest period, testimony to the confidence the purchaser has in the location, who presented a strong offer early in the process to out muscle other developers” Benson added.
According to Savills Australia, Executive, Nick Garoni, the transaction provides a positive tale for the state of Melbourne’s luxury apartment market.
“Whilst a number of development sites this year have transacted to special use buyers and developers, the result to a traditional build to sell developer is a good litmus test for the current state of the high-end apartment market and its future.
“We have experienced developers fully cognisant of the market challenges and opportunities confidently acquiring high-quality sites and trusting the end product commands premium sales rates and will meet a deep pool of retail buyers.” Nick said.
