Melbourne, 09 March 2016 – A local developer has snapped up a North Melbourne site for $1.75 million, in a move that demonstrates the growing demand for development opportunities in Melbourne’s northern suburbs.
The sale of the 120sqm development offering at 20 Vale Street was negotiated by CBRE’s Julian White, Paul Tzamalis and Justin Dowers on behalf of a local investor, via a public on-site auction.
Mr White said the lively auction, which saw four bidders compete for the site in front of over 100 attendees, signified the evolution of the inner northern suburbs as a key focus for developers.
“The University of Melbourne and the new Royal Children’s Hospital are underpinning employment and growth in the area, which is driving increased residential demand.”
“North Melbourne has the highest Airbnb usage across all of Victoria and 20 Vale Street provides an opportunity for developers to establish short term stay facilities, or smart residential projects, to appeal to this market, “added Mr White.
“The strong demand for residential sites in North Melbourne is further increasing investor confidence in the ability to find tenants quickly.”
The sale of 20 Vale Street follows a series of recent transactions negotiated by CBRE in Melbourne’s inner-north, across a number of different deal sizes. These include the sale of 111 Canning Street, North Melbourne for $31million, 22-28 Courtney Street, North Melbourne for $5.5 million and 699 Park Street, Brunswick for $30.8 million.
“We are continuing to witness strong demand from both local and offshore groups, who are keen to secure a foothold in the northern suburbs of Melbourne. Developers and investors are attracted to the area as it is unaffected by new planning changes in the Capital City Zone, and there is the added benefit of proximity to the University of Melbourne and other amenities,” added Mr White.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.