South east Melbourne residential development site sells for $43 million

A major infill site at Officer in Melbourne’s south east has been sold to a local residential developer for $43 millin. 

CBRE Victorian development sites agents David Minty, Nathan Mufale and JJ Heng sold the 12 ha Rix Road property via an expressions of Interest campaign. 

Mr Minty said the sale reflected a record rate of $3,650,000 per hectare.

It was the first time the corner general Residential landholding had been offered for sale in 33 years. 

 It last sold for just $225,000 in 1988, according to CoreLogic records.

The land had been used to grow peas.

Developer YourLand, backed by one of Japan’s biggest companies, Nippon, was successful, when edging out Satterley. 

The Herald Sun noted the buyer had first offered the family $27m off-market last year.

The vacant site forms part of the Officer Precinct Structure Plan (PSP), which allows for 15 dwellings per net developable hectare.  

The on-market campaign generated 18 offers from private and institutional developers, located both domestically and offshore.” 

The property sold following the conclusion of a second and final round when strong competition was received, including seven bids sourced via CBRE’s Asian Services Desk.   

A capital allocation totalling over $500 million was received as part of the first round of offers. 

The sale price achieved was $11,000,000 above the vendor’s reserve and represented a 26% uplift between the first and second rounds. 

“We’re experiencing strong demand from developers looking to secure development pipelines in this region, which is unlikely to be satisfied in a market which is very short on appropriately zoned or earmarked landholdings,” Mr Mufale added.

The YourLand real estate division of Nippon Telegraph and Telephone also owns Rix Road Project in the growing suburb, Officer.