Demand remains strong for mixed-use development sites with holding income.
Development sites remain a strong focus in Perth’s investment market with a North Coogee property selling last week and a West Perth development site going to auction in October.
The North Coogee property, next to the Shoreline residential subdivision in the Cockburn Coast project just south of Fremantle, sold for $1.2 million to a private buyer.
The property at 1 Garston Way was sold by Colliers International agents Wayne Chorley and Ashlee Arnott who said there had been a strong response to the campaign and the site sold ahead of a planned auction.
“Although we are in a more cautious market, developers are still keen to secure apartment sites, especially ones that offer a holding income,” Mr Chorley said.
“This former industrial precinct is undergoing a transition to high density residential and 1 Garston Way has development potential for a six-storey apartment building with ocean views.
“Although the property was sold with vacant possession, the buyer was attracted to its quality office/warehouse which he intends to lease while obtaining the approvals for development of the site.”
In the latest development site on the market, Colliers will next month auction the 1007sqm commercial property leased to automotive company Bridgestone at 1 Cleaver Street in West Perth’s light industrial area.
The city-fringe property is 800m from the Leederville train station and has an annual net holding income of $58,500. It is also within the City of Vincent’s Cleaver Precinct which offers redevelopment potential of up to seven storeys with potential for redevelopment ranging from industrial to residential.
“We expect the Cleaver Street property will attract strong interest from developers due to its three street frontages and substantial holding income until 2020 which allow the buyer to finalise development approvals and or/amalgamate a larger site,” Ms Arnott said.
The Cleaver Street property will be auctioned on site on November 9.