Melbourne development site expecting strong foreign interest

An 863 square metre development site in Melbourne’s Southbank residential precinct has seen strong interest. The 47 City Road precinct, being sold through CBRE City Sales, has seen interest around the $9 million mark.

It is bordered by St Kilda Road and Southbank Boulevard, and currently holds a single-level office building, 12 onsite car spaces and two street frontages on Fawkner Street and City Road, which provides a revenue stream while plans and permit are organised for future development.

CBRE’s Josh Rutman, Mark Wizel and Ed Wright are marketing it through an International Public Expressions of Interest campaign that is expecting to see strong offshore interest. The campaign goes until June 12.

It is located near Crown Casino Complex, the Yarra River, and Southbank Theatre.

"Developers, especially those from Asia, are recognising Southbank is serviced by world class infrastructure and amenity, and is viewed by overseas apartment buyers as being a terrific alternative to buying an apartment in the Melbourne CBD,” said Rutman.

Recently, Singapore’s Aspial Corporation purchased a land holding on the corner of City Road and Southbank Boulevard, Australia 108, for $42.3 million. A total of more than $180 million has reportedly been spent in the past six months on Southbank sites – with the majority from offshore purchasers.

Wright noted that offshore buyers are interested in two elements primarily. The first – how many apartments can be built on the site. The second – what they can get for these apartments.

High density Southbank apartments often go for high prices, he said.

“With the recent explosion of Asian investment into Melbourne’s property market, we expect this property will be of particular interest to offshore investors looking to undertake a landmark residential development in Australia’s most liveable city.”