A block of flats in Malvern East, which was last purchased in August 2016 for $2.7 million, has sold at auction to a local Melbourne investor for $3.015 million.
The 37 Paxton Street property comprises five leased apartments on a 780 sqm allotment and was sold with a permit for 10 luxury apartments.
CBRE Manager Nathan Mufale, who brokered the deal with colleagues Dylan Kilner and Chao Zhang, said the property attracted a strong field of local and Chinese purchasers.
“In front of a crowd of more than 100 attendees, the auction yielded bidding from four local and two Chinese parties. The property demanded strong interest from both investors and developers, and it was a local investor who eventually outbid a Chinese developer to secure the block,” Mr Mufale said.
“We are finding local buyers with extensive knowledge of a local area or precinct are outbidding their Asian rivals, especially in blue chip suburbs.”
Dylan Kilner added that local investors are paying sharp yields for apartment blocks that represent strong refurbishment potential in locations with high rental demand.
Mr Zhang noted developers are also showing increased interest in smaller owner-occupier projects to fill gaps in their development pipeline.
“The luxury owner-occupier permit was highly attractive to a number of underbidders at the auction. The product was highly saleable to this particular market as the project size fit the pipeline of many larger development groups,” Mr Zhang concluded.
The 37 Paxton Street property comprises five leased apartments on a 780 sqm allotment and was sold with a permit for 10 luxury apartments.
CBRE Manager Nathan Mufale, who brokered the deal with colleagues Dylan Kilner and Chao Zhang, said the property attracted a strong field of local and Chinese purchasers.
“In front of a crowd of more than 100 attendees, the auction yielded bidding from four local and two Chinese parties. The property demanded strong interest from both investors and developers, and it was a local investor who eventually outbid a Chinese developer to secure the block,” Mr Mufale said.
“We are finding local buyers with extensive knowledge of a local area or precinct are outbidding their Asian rivals, especially in blue chip suburbs.”
Dylan Kilner added that local investors are paying sharp yields for apartment blocks that represent strong refurbishment potential in locations with high rental demand.
Mr Zhang noted developers are also showing increased interest in smaller owner-occupier projects to fill gaps in their development pipeline.
“The luxury owner-occupier permit was highly attractive to a number of underbidders at the auction. The product was highly saleable to this particular market as the project size fit the pipeline of many larger development groups,” Mr Zhang concluded.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.