Melbourne CBD and fringe in hot demand from hungry developers: Colliers International
An ongoing appetite for permitted sites in Melbourne, combined with limited supply, is set to create a burst of buyer activity in the final weeks of 2017.
Colliers International has been appointed to sell three separate sites in the CBD and Southbank amidst continued strong demand.
At 185 A’Beckett Street, Melbourne, agents Daniel Wolman, Matt Stagg, Oliver Hay and David Sia are selling a substantial 1,038sqm landholding with an approved permit for a 48-level high-rise, mixed use development incorporating 299 dwellings and ground floor retail.
Located in the heart of the Melbourne CBD with access to the city’s world class education precinct, medical precinct and first-class lifestyle amenity including QVM, Flagstaff Gardens and State Library of Victoria, the property is also set to benefit from the upcoming $11billion Metro Rail Project and the nearby $250million Queen Victoria Market Redevelopment Project.
With a design by leading global architecture firm, The Buchan Group, and a highly sought after 24:1 plot ratio, Colliers International expects the property to be hotly contested.
“Permitted CBD sites are still seeing incredible demand, particularly those which fall within the guideline of Matthew Guy’s previous planning regime,” Mr Sia said. “The 24:1 plot ratio on 185 A’Beckett Street is currently unattainable under today’s 18:1 planning restrictions and, as such, we expect it will generate intense competition."
He said tightened planning restrictions in recent years had not only heightened competition for sites in the CBD but had encouraged a shift in demand to markets surrounding the CBD.
“With a significant withdrawal of high density CBD permits, developers are widening the net beyond just the traditional CBD market and are now also looking towards the city fringe, where we have seen a rise in boutique projects targeting owner-occupiers,” Mr Sia said.
Increased interested in city fringe sites was also expected to drive demand for two Southbank properties being offered for sale prior in the coming weeks.
Mr Wolman, Mr Hay, Mr Sia and colleague Bryson Cameron have been appointed to sell 85 Coventry Street and 48 Moray Street in Southbank.
85 Coventry Street is a 976sqm site with development approval for a premium 19-level residential tower incorporating 143 apartments and ground floor retail, designed by the acclaimed Hayball Architects.
“This is a dominant triple frontage parcel of land with protected view corridors towards the Melbourne CBD,” Mr Wolman said. “It offers convenient access to the CBD via the tram network and also the future Domain Train Station and is surrounded by historic parklands including The Royal Botanic Gardens., Albert Park Lake and Fawkner Park."
The 1,173sqm property at 48 Moray Street has development approval for a 51-level residential tower with a plot ratio of 24:1, accommodating 287 apartments, five levels of commercial space and ground floor retail.
It is located at the heart of the Southbank precinct, within walking distance of the Crown Casino entertainment precinct and a short distance from the Royal Botanic Gardens and Albert Park Lake and Golf Course. It also has direct access to Melbourne’s freeway and public transport network.
“We expect to see enormous interest from purchasers looking to capitalise on world-class locational synergies,” Mr Hay said. “In particular the proximity to Southbank Boulevard and the Crown entertainment precinct."