Strong developer interest sees premium vacant allotment sell prior to auction

Colliers International sells 501-509 King Street, West Melbourne for $6.02million

A vacant triple-frontage block in West Melbourne has sold ahead of auction, in a sign of strong activity in the city’s boutique development market.

501-509 King Street was snatched up by a private Chinese developer for $6.02million, a rate of $6,400 per sqm, one week before its scheduled auction date, Thursday, December 8 at noon.

Colliers International’s Oliver Hay, Daniel Wolman, Matt Stagg and David Sia negotiated the deal off the back of selling an adjoining site, 511-525 King Street back in April, 2014, for $10.05million, a rate of $5,100 per sqm.

“We had strong interest from developers and long-term landbankers looking to capitalise on the booming city-fringe precinct, with particular enquiry from those in boutique development and flexible mixed-use projects,” Mr Wolman said.

“Eu Ming Lim of Thomson Geer Lawyers acted on behalf of the purchaser, who recognised this as an excellent opportunity to extend their footprint in the precinct and did not want to be beaten at auction."

Mr Hay said the huge increase in the square-metre rate, when compared to the adjoining site sold in 2014, was reflective of offshore developers’ desire to capitalise on Melbourne’s current property climate.

“The sale demonstrates demand from wealthy Chinese buyers remains very strong for prime sites and is expected to continue throughout 2017,” he said.

The allotment is zoned for mixed use and comprises two titles totalling 940sqm, with three street frontages measuring 85 metres.

At the corner of King and Rosslyn streets, the property is 150 metres north-west of Flagstaff Gardens and 350 metres west of the Queen Victoria Market.

“Within close proximity of the Melbourne University precinct and about 500 metres from the Melbourne CBD grid, the property is surrounded by a rapidly evolving demographic in the surrounding area, including the new Haileybury College CBD campus, opening in January 2017,” Mr Stagg said.

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