Colliers International sells 4,268sqm permit-approved property on behalf of Spotlight Group
A Spotlight Group-owned development site at Box Hill is believed to have sold to CBD Development Group for almost $50million, highlighting the sky-rocketing demand for high-density apartment living in Melbourne’s suburbs.
The 4,268sqm property at 851 Whitehorse Road, on the corner of Wellington Road, has a permit in place for three residential towers, up to 37 levels high with 517 apartments and a 150-room hotel.
Colliers International’s Development Site Sales team, Trent Hobart, Bryson Cameron, Hamish Burgess and Jun Lai, managed the international expressions-of-interest campaign, which attracted multiple offers from local and offshore parties.
Mr Cameron said the result highlighted the increasing development capital flowing into the suburbs of Melbourne.
“This deal reaffirms the underlying confidence in the suburban apartment market from the Asian origin developer community in Melbourne,” he said.
“The campaign was highly competitive and the vendor received multiple offers from mainland China, Hong Kong, Sydney and Melbourne developers, ultimately selling to the locally based CBD Development group.”
Mr Cameron said several of Melbourne’s eastern suburbs, such as Box Hill and Glen Waverley, were considered “international destinations of choice” among some of the world’s most prominent developers.
“This is due to the strong fundamentals of our apartment market, including healthy migration, easy access to education, retail and transport, and a local demographic that understands apartment living,” he said.
The sale price represents almost $100,000 per apartment for high-density land outside the CBD.
“We are witnessing more developers’ capital now flowing into the suburban regions of Melbourne,” Mr Hobart said.
“It has become increasingly difficult to find development sites with scale within the CBD, which is a result of the densities being increasingly capped and the simple fact there are less sites available for redevelopment.”
The deal follows the successful sale Colliers International negotiated for the “air rights” land above The Glen Shopping Centre, which sold for close to $60million.
The proposed development also has a three-tower design for 539 apartments above the future extended shopping centre.
“The Glen was a different style of campaign, where we ran an off-market invite-only process due to the complexities of selling future unbuilt air rights land,” Mr Hobart said.
“The sale price reflects more than $105,000 per apartment and was purchased by the Golden Age Group, which will deliver a luxury apartment offering on top of the shopping centre.”
Mr Burgess said the appetite for apartments in Box Hill and surrounding suburbs was expected to continue, and ultimately increase, with Melbourne’s burgeoning population and enviable lifestyle.
“With the pent-up demand for residential accommodation in the CBD being constrained by the government, the suburbs allowing higher densities with a demographic who understand the lifestyle of apartment living will continue to thrive,” he said.
“These two major suburban transactions break new ground for Melbourne’s suburbs and reaffirm the strengthening demand from Asian-origin development companies seeking world-scale residential apartment projects in suburban Melbourne.”