Preston Site Smashes Local Sale Rate Records

Savills Melbourne has just sold a strategic development site in Preston, adjacent to the Preston Market and Preston Train Station, shortly after the close of an Expression of Interest campaign.

The property at 30 Cramer Street (corner St Georges Road), Preston comprises a 1,761 square metre site zoned for Flexible Priority Development and currently utilised as commercial car parking. The property has the benefit of a recently issued planning permit for a Hayball designed project comprising 95 apartments over 9 levels.

According to Savills Clinton Baxter, who brokered the deal with colleagues Jesse Radisich and Benson Zhou, the property sold at a price of $8,000,000 after intense competition for the site from a mix of local and off-shore developers.

Mr Baxter said that the property was extremely attractive to the development market due to the high local amenity, striking Hayball design, and protected natural light and views from the future project.

“Ultimately a major local developer managed to out-muscle very strong interest from other local and Asia-based developers,” Mr Baxter said.

Mr Radisich said that “this transaction sets a new benchmark for Preston, and northern suburbs generally, with a land rate of $4,520/sq m and a rate per approved unit of $81,600/apartment, and clearly demonstrates the strength of developer demand that exists throughout the middle suburbs of Melbourne’s north.”

“Despite media reports to the contrary, developers are scrambling to secure high quality residential projects to deliver more housing into the market to meet the demand of Melbourne’s burgeoning population.”

Mr Zhou said that Chinese developer and investor interest remains extremely strong across the whole market, with literally billions of dollars of buy requirements seeking strategic land and investment within Melbourne.

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