Developer pays premium for dual residential sites

A Victorian developer has paid $5.4 million for two adjoining residential properties netting the vendors a total of $2.7 million apiece and a possible windfall each of $800,000.

Teska Carson Director, George Takis said the owners of the 2 and 4 Littlewood Street Hampton properties could have expected circa $1.9 million each for their properties as individual sales.

"We are seeing more and more of these developments which have been very popular with residents looking to cash in on their good fortune whilst also increasing catchment for nearby retail centres, and providing councils with both increased revenue and maximisation of the use of local infrastructure. It makes a lot of planning "sense and has been widely accepted by communities,’’ Mr Takis said.

At just under $3,900 a square metre – a record for the area - for the land this is an extraordinary result driven by a robust housing and apartment market, low interest rates, Melbourne’s surging population and the relatively new planning regulations which have given the green light to multi-storey residential development within close proximity of activity centres."

Permission is being sought to develop a multi-level apartment building on the site.