Buyers are circling a South Perth site labelled one of the last large parcels for development on the suburb’s foreshore.
The 1730sq m property at 11 South Perth Esplanade is occupied by a three-level, six-unit apartment block built about 60 years ago and offering 28m of Swan River frontage.
The site’s zoning would allow a five-level residential development on the site.
The property is being offered for sale via an expressions-of-interest campaign managed by Knight Frank agents Jonathan Wong, Cory Dell’Olio and Tony Delich on behalf of a Chinese business family.
Price expectations for the property, which will be sold in one line, sit about $25 million.
Wong said the property’s location made it suitable for a premium residential development and, in the meantime, it offered holding income.
“We believe this property represents one of the last opportunities to secure a large parcel on the South Perth foreshore.”
Dell’Olio said the property offered buyers the opportunity to capitalise on value and rental growth due to the strength of the residential market, with strong demand for more housing.
“Over the past year, Perth has maintained its position as the strongest market in the country for value growth,” he said.
“Increased migration and a strong underlying WA economy is fuelling population growth, which, combined with a housing shortage, has put pressure on both values and rentals.”
Expressions of interest for the property are due to close on August 29.
Land prices in Perth have equalled that of the 2007 boom in the city at $305,177, with an average lot size of 364sq m, according to the Urban Development Institute of Australia.
It said that average price was likely to continue to rise, with Urbis director David Cresp warning increasing land prices heralded more pain to come, especially in the apartment sector, where there has been “very little activity” in recent years.
According to the UDIA, it is the first time the average price has topped $300,000 since 2007.
