Developers are showing confidence in Melbourne’s premium suburbs as two luxury apartment sites in Malvern East and Toorak trade to experienced local developers. In a clear indication of the depth of the high-end apartment market, the two properties attracted more than 200 enquiries.
Transactional activity continues to be strong in this space, primarily driven by seasoned developers identifying the current market as an opportune time to buy, with a typical flight to quality environment pinning up values for premium residential end products.
Both sites were transacted by Savills agents Julian Heatherich, Benson Zhou, Nick Garoni, Tanya Su and Cameron Zamora.
The first site at 1065-1067 Malvern Road, Toorak transacted to a local developer for an undisclosed figure.
The property holds a permit for 10 luxury apartments, designed by Christopher Doyle Architects, who is renowned for designing bespoke residential projects in Melbourne’s blue-chip suburbs.
According to Julian Heatherich, State Director, CBD and Metropolitan Sales at Savills Australia, the purchaser took confidence in the lavish design of the project which was significantly advanced and was well paired to the premium Toorak location.
“Acquiring the project speaks to the confidence the purchaser has in the high-end apartment market, taking a bullish approach to the sale rates the complete project will generate” he said.
Finalised on the same day, 94 Burke Road, Malvern East transacted prior to the prescribed Expressions of Interest period for an undisclosed figure.
The park front site of 1,136sqm previously traded for $3,900,000 in 2019 - the property holds a permit for a Ewert Leaf designed project comprising 11 apartments and a total net saleable area of 1,255sqm.
“The volume of interest in the site that developed instantaneously when the campaign hit the market shows the depth in this boutique, luxury segment on the market” said Benson Zhou, Head of Asia Markets at Savills Australia
The park front element of the site was a key value driver with very few opportunities remaining to develop on the stretch of Burke Road that fronts Central Park.
“The property transacted mid-way through the Expressions of Interest period testimony to the confidence the purchaser has in the location, who presented a strong offer early in the process to out muscle other developers” Benson added.
According to Savills Australia, Executive, Nick Garoni, both transactions provide a positive tale for the state of Melbourne’s luxury apartment market.
“Whilst a number of development sites this year have transacted to special use buyers and developers, these two results to traditional build to sell developers are a good litmus test for the current state of the high-end apartment market and its future”
“We have two astute and experienced developers fully cognisant of the market challenges and opportunities confidently acquiring these high-quality sites and trusting the end product commands premium sales rates and will meet a deep pool of retail buyers” Nick said.
Artist's Impression - 1065-1067 Malvern Road, Toorak
94 Burke Road, Malvern East
Artist's Impression - 94 Burke Road, Malvern East
