Townhouse development site in Melbourne's Balwyn fetches $4.05 million at auction

Two combined residential houses in Melbourne's Balwyn suburb have been auctioned off for $4.05 million.

The 1,853 square metre site at 327-329 Union Road, which was offered to the market with a planning permit for seven luxury townhouses, was snapped up by a Chinese buyer.

The selling agents were CBRE’s Mark Wizel, Julian White and Scott Orchard.

The sale price translates to a rate of more than $575,000 for each permitted townhouse.

There were more than 100 enquiries, with six offshore bidders, said Julian White.

“CBRE is witnessing a spike in demand from mainland Chinese buyers across a broad range of asset classes. Many industry authorities expected the uncertainty in the Chinese economy to have a negative impact on the Australian property market, however, what we are witnessing is quite the opposite,” added Wizel.

The properties are surrounded by residential homes and close to retail centres like Belmore Road retail and Coles. Also nearby is the Balwyn High School, one of Melbourne's top public schools.