Chinese developer secures Clayton South townhouse site

A Chinese development company has snapped up a Clayton South mixed-use site for $10,980,000.

CBRE negotiated the sale of 1380-1388 Centre Road on behalf of Elco Foods.

The 6,378sqm site is an industrial building utilised by the food importer.

The sale price represents a land rate of $1,722 per sqm – a strong result linked to growing demand for strategically located landholdings capable of townhouse or mixed-use development.

There were nine offers at the conclusion of the campaign, five of which were from Asian parties.

CBRE noted larger scale townhouse development opportunities are extremely popular in the market at present, driven by the big four banks’ willingness to provide funding for this sector and the rapid growth in median house prices in the middle and outer suburbs placing affordability pressures on free standing dwellings.

Cedar Woods is completing a significant townhouse development called Jackson Green in Clayton South.

Abacus Property Group has recently sold a major landholding on Browns Road for $51.5 million to a Chinese buyer.

Director of Elco Foods, Emmanuel Kotis had a valuation in May 2015 at $4.9 million.