Chinese developer banks $15 million development site in Melbourne

A Chinese group has bagged a 1,441 sqm South Melbourne mixed-use development site for $15.07 million, more than $5 million above what the vendor paid only three years prior.

The 41-49 Bank Street site was sold through an international CBRE expressions of interest campaign.

The agents said the EOI campaign attracted interest from both offshore developers and prominent local groups.

“We anticipate continued strong demand from Chinese developers throughout 2016, irrespective of current concerns with the Chinese stock market, which will drive positive outcomes including jobs in construction, planning and design,” CBRE suggested. 

The site has permit approval for a 16 level mixed-use development, with existing permitted height above current planning parameters. It offers dual street frontage totaling more than 60 metres. 

The location is close to Melbourne's arts, sporting and entertainment precincts.

Julian White, associate director of CBRE’s Victorian Development Sites team, said the continued prominence of Chinese buyers was encouraging, particularly for Melbourne’s accommodation sector.

“Apartment living is the way of the future in Melbourne. The continued high absorption rates of CBD and inner city apartments are a clear sign that the market needs to continue to build more apartments, not slow down development.”