Colliers International expects a hot contest for prime site with future CBD and water views
Colliers International is preparing for an influx of interest from local and offshore developers as The Millennium Site at 1000 La Trobe Street is offered to the market.
Colliers International’s Trent Hobart and Bryson Cameron have been appointed to sell a 6,007sqm freehold development site situated in the renowned waterfront precinct of Digital Harbour on behalf of Digital Harbour Holdings and transaction advisors Charter Keck Cramer.
“The Millennium Site forms part of Melbourne’s waterside precinct which will benefit from the redevelopment of Harbour Esplanade,” Mr Hobart said. “Situated between Southern Cross Station, Etihad Stadium, New Quay, the waterfront, and the soon to be announced E Gate precinct, The Millennium Site will be a key element within a highly connected precinct linking the Melbourne CBD to the Docklands waterfront.
“There is a tram stop on the doorstep of the site and developers will be able to capitalise on the uninterrupted water and CBD views from the upper levels of any potential future development.
“CBD development sites are becoming increasingly popular among developers as central CBD precincts become more tightly held."
“Melbourne as a city has a diminishing supply of prime residential development opportunities, with development sites increasingly hemmed in by adjoining buildings. Docklands is not as intensively developed on a site-by-site basis, so it is becoming increasingly desirable for residential development because there are more opportunities to optimise both built form outcomes and future view lines."
Mr Cameron said: “Docklands is also becoming more connected to the CBD. Whereas once Docklands was thought of as a very separate precinct, new roadways, pedestrian access and tram super stops have seen it become increasingly thought of as part of the western core of the CBD.
“View lines, site access, proximity to public transport and a variety of Melbourne lifestyle locales are all crucial for developers looking at these type of sites and The Millennium Site has all of these in spades."
Mr Hobart: “There has been a distinct lack of prime residential development sites offered to the market in Melbourne recently. Consequently demand has increased for sites with de-risked planning frameworks.
“The Millennium Site is unique in that it represents a freehold offering, which is extremely rare in the Docklands precinct. Furthermore, it benefits from an allowable 47,940sqm of residential gross floor area. We anticipate a smooth planning process toward an expected future development of more than 600 residential apartments."
The last five major development site sales in Docklands have been sold on land value rates of more than $7000/sqm, illustrating excellent value in comparison to the central CBD land values.