Medium-density and townhouse development sites in Melbourne’s middle-ring suburbs continue to attract builder-developers, with a Cheltenham site the latest to change hands for an impressive.
Fitzroys agents Zane Alexander and Terence have sold the 1,429sqm, 1 Latrobe Street site for $2.7 million, which was offered with a permit for 11 townhouses.
A local builder-developer acquired the property, which attracted interest from local and interstate developers, builder-developers and capital groups.
“Townhouse sites such as these generate huge interest with builder-developers, who are often able to pay a premium given their ability to control construction costs and the reassurance of strong owner occupier demand growth in the middle-ring suburbs,” Mr Alexander said.
He said the site’s approved product mix of three three-bedroom and eight two-bedroom apartments was further encouragement for builder developers looking to cater for owner occupiers.
Beller Commercial's Liam Rafferty has sold one of Melbourne's last remaining humble milk bars on a yield of $3.5%.
The property, at 131 Thomas Street, Brighton East, sold for $885,000 with over 70 buyer enquiries indicating continued demand for freehold properties below the $1 million mark.
Mr Rafferty said buyers were comfortable with low yields if they believed there was good capital growth or a value add play down the track.
The regeneration of the Sydney CBD is underpinning a relatively favourable period for secondary rental growth making the commercial property market particularly attractive, according to leading commercial, retail and industrial real estate agency Gunning.
Gunning leasing, sales and brokerage agent Simon Larkins said at a time when smaller tenants were becoming more active in the leasing market, secondary stock remained limited as older buildings were withdrawn from the market for alternative uses or redevelopment.
Mr Larkins, who recently joined the team at Gunning as part of their expansion plans, said following recent withdrawals, gross face rental growth in the secondary market was currently at its highest level since early 2009, increasing 7.5 per cent in the 12 months from January 2016.
“It’s a great time to be a landlord,” he explained.
“Tenant demand in the Sydney CBD has picked up markedly over the past year and resulted in the vacancy rate remaining at a six-year low of 6.3 per cent."
Gunning Principal Malcolm Gunning said the appointment of Mr Larkins, who will work out of the Surry Hills office, was a reflection of the demand that the agency had seen in regard to leasing, sales and office space brokerage in recent times.
“Simon has intimate and extensive knowledge of the Sydney office market,” Mr Gunning said.
“He has contacts across thousands of different office leasing opportunities throughout Sydney, and in particular the CBD.
“Simon is a real estate professional whose determination, proficiency and commitment to his clients has seen him achieve exceptional results.
"His appointment is a reflection of the current upswing in the market which has been favourable for our agency and has seen us grow to close to 20 staff,” Mr Gunning added.