Hocking Development Site Up For Grabs

Real estate identity Greg Hocking has appointed CBRE to sell a prominent development site in the sought after suburb of South Melbourne.

CBRE’s Victorian Development Site team has been appointed to auction the site at 31-33 Park Street on May 21.

The triple fronted site, which has permit approval for an 11-level building, comprising 38 apartments and two shops, is located in the Shrine and Botanical Gardens precinct of South Melbourne.

The site is positioned only metres from the highly successful The Block series project, and the project 100Park, that has received outstanding pre-sale success.

CBRE selling agents Mark Wizel, Julian White and Jamus Campbell said the campaign was expected to generate significant enquiry in the lead-up to the onsite auction.

[urbanRelatedPost][/urbanRelatedPost]“This site is expected to generate strong investor interest and follow recent trends we are witnessing, whereby, permitted sites in good locations are sought after by both local and offshore developers,” Mr Wizel said.

“Developers of sites such as these are willing to sacrifice some profit margin in their feasibilities, on the knowledge that they can sell the apartment product quickly and at high rates. We are seeing high volume of apartment sales generating well above $10,000/sqm in this location.”

He added: “South Melbourne is a desirable location, however, with median house prices above $1,200,000, affordability is a barrier preventing a lot of people from living in this great location. Good quality apartment accommodation is the solution.”

This appointment follows successful campaigns of other permitted development sites by CBRE Victorian Development Sites in 2014 at 33 Coventry Street, South Melbourne for $5,480,000 ($147,000 per unit and $17,125/m²), and 77 Palmerston Crescent, South Melbourne for $8,400,000 ($110,000 per unit and $10,344/m²).

Mr Wizel said CBRE’s Victorian Development Sites team continued to experience strong demand for suburban sites with permits, including a 19 per cent increase in demand from offshore parties.