Chinese buyer swoops on Glen Iris church

09 March 2018

Savills sells Melbourne east development site for $9.5 million

The Churches of Christ has offloaded a major corner site in Glen Iris for $9.5 million, far exceeding initial price expectations and demonstrating the ongoing demand for boutique development sites in Melbourne’s leafy east.

Following a competitive expressions-of-interest (EOI) campaign, a Chinese developer was selected as the buyer of 1536 Malvern Road, a 1,850sq m corner site close to Burke Road and primed for a luxury apartment development.

Savills Australia’s Clinton Baxter, Jesse Radisich, Nick Peden and Benson Zhou, who represented the Churches of Christ, brokered the deal.

“The sale price reflects a land rate of $5,135 per sqm, which is a huge result for a site of this nature,” Mr Baxter said.

Mr Baxter said 2018 had commenced with “a clear sense of optimism and confidence” throughout the development market, which was translating into record sales results for Savills clients.

“The sale campaign generated widespread interest and a 50/50 split of local and Chinese buyers,” he said.

“We received 12 separate bids by the EOI closing date, which ultimately resulted in the sale price of $9.5 million – well in excess of the $8 million expectations.”

Mr Baxter said that despite media reports of a withdrawal of Chinese money from Melbourne’s commercial property market, Savills was witnessing the opposite.

“That has not been the case for us at all,” he said.

“We are actually experiencing a surge in Chinese interest in the sub-$20 million price range right across the market.

“This could be explained by an increased motivation of private wealth exiting China, as the Chinese government seeks to tighten capital controls.”

Mr Radisich said the Stonnington and Boroondara municipalities remained the most highly sought-after locations in Melbourne for residential development.

“Developers and the major banks are seeking to focus their resources on boutique projects aimed at the owner-occupier and empty-nester markets,” he said.

Mr Peden said that with “interest rates effectively on hold for most or all of 2018”, the market was likely to accelerate as the year unfolded and buyer confidence continued to grow.

 
 

Key Contacts

Clinton Baxter

Clinton Baxter

State Director - VIC
CBD and Metropolitan Sales

Savills Melbourne

+61 (0) 3 8686 8021

 

Jesse Radisich

Jesse Radisich

Director
CBD and Metropolitan Sales

Savills Melbourne

+61 (0) 402 085 702