Stonebridge Property Group are seeing a resurgence of buyers for high density sites in major retail and activity centres despite "Higher density sites have faced headwinds over the past 12 months, with rising interest rates and building costs being a major factor in purchasers decisions.” Says Stonebridge Director Andrew Milligan and Stonebridge National Partner, Julian White. 

High Density Residential Development Site Demand:

Throughout our campaigns, we have been focussing on the fundamentals of the residential property market and what will be driving development in the foreseeable future of housing supply, highlighting undersupply, rising population and rising rents, and lack of substantial development in the pipeline. This has allowed buyers to look beyond recent challenges and purchase higher density permit approved sites with confidence.’ said Stonebridge Director Andrew Milligan.

Stonebridge anticipates continued strong interest in high density sites, as core fundamentals for housing supply continue to put pressure on housing stock’ added Stonebridge National Partner Julian White.

A local private developer has purchased 296 Plenty Road, Preston, paying $3,700,000 for the 55 apartment, permit approved 6-storey development site.

Buyers were attracted by the locational attributes, only 250 metres from High Street, and the larger volume of housing provided for by the permit. The successful purchaser ultimately plans to deliver the project.

Stonebridge have also sold 28 Scotsburn Grove, Werribee, with a private developer purchasing the 49 apartment, permit approved 4-storey development site on a 90 day settlement.

The Scotsburn Grove, Werribee campaign received significant interest from a range of buyer profiles including residential/commercial developers and landbankers, resulting in a total of 87 inquiries and 8 offers. The competitive tension generated throughout this process, lead to multiple unconditional offers being submitted, including the successful purchaser submitting on an unconditional contract of sale, which was sourced by the Stonebridge Asian Practice Team.’ added Stonebridge Partner Chao Zhang.

Childcare Development Site Sector: 

In line with the theme of a growing population and shortage of housing stock, Stonebridge are seeing strong demand in the childcare development site sector, selling a commercial superlot within the Forrest Green Precinct of Armstrong Creek to a local childcare developer. The 3,000 sqm site is suited to myriad commercial uses within the burgeoning Armstrong Creek precinct, ultimately being purchased for a childcare development.

The purchaser paid $2,500,000, which represents a land rate of approximately $833 per square metre, a premium for Armstrong Creek, due to the site’s superior location adjoining a major town centre and future transport hub. 

Stonebridge has now sold four childcare development sites in 2023, with other sales at 39-43 Peg Leg Road, Eaglehawk; 197 Hutton Road, Keysborough and 1 Niki Place, Officer.

Stonebridge National Partner, Julian White, commented on this saying “All four of these sales further highlight the appetite for developers seeking childcare sites, especially in Melbourne’s growth corridors”.

The Stonebridge specialist development sites team expects the trend of developers looking to acquire childcare sites and higher density sites in Melbourne’s suburban and growth corridors to continue, as the population in these areas continue to expand.

Summary of Recent Sales by Stonebridge Property Group: 

Sale 1 - 296 Plenty Road, Preston

Price: $3,700,000

Method of sale: Expressions of interest

Buyer: Local builder developer

Summary: A 1,644sqm landholding with a permit for 55 apartments and retail. The sale represented a land rate of $2,251/sqm

Agents: Stonebridge Property Group's Andrew Milligan, Julian White and Chao Zhang marketed the property for sale on behalf of a local investor.

Sale 2 - 28 Scotsburn Grove, Werribee

Price: $1,500,000

Method of sale: Expressions of interest

Buyer: Local developer

Summary: A 1,668sqm landholding with a permit for 49 apartments and retail. 6 offers were received.

Agents: Stonebridge Property Group's Lucas Gentile, Andrew Milligan and Chao Zhang marketed the property for sale on behalf of a local investor.

Sale 3 - 465 Auburn Road, Hawthorn

Price: $17,000,000

Method of sale: Expressions of interest

Buyer: Local land banker

Summary: A 2,439sqm Commercial 2 Zone landholding, improved with a dated two-level office building. The sale represented a land rate of $6,970/sqm 

Agents: Stonebridge Property Group's Julian White, Dylan Kilner, and Chao Zhang, along with Colliers' Alex Browne and Ben Baines

Sale 4 - Lot A, 432-470 Barwarre Road, Armstrong Creek

Price: $2,500,000

Method of sale: Off-market

Buyer: Child care developer

Summary: A 3,000 sqm land parcel, within Armstrong Creek, close to the Town Centre. The sale represented a land rate of $833/sqm.

Agents: The sale was handled by Stonebridge Property Group’s Lucas Gentile, Julian White and Chao Zhang. Mr. Gentile said, “due to Stonebridge’s activity and knowledge in the childcare site market, the team was able to directly place a buyer for the Property via a discrete off-market process.”

Below Image: Stonebridge Property Group’s Lucas Gentile

To request a sales analysis and or discuss current market opportunities please contact Stonebridge Property Group via the below contact details. 

Related Reading:

Asian capital is looking at commercial real estate - Stonebridge

Stonebridge Property Group’s Asia Practice Partners share insights from their most recent investor tour to Asia 

Stonebridge Property Group releases mid-year update on The Victorian development site sector

Below Image: Stonebridge Property Group Asia Team