In a landmark deal that underscores the resilience of the suburban apartment market, the City of Monash has sold the largest metro/suburban apartment development site of 2024.
The mixed-use development site at 281 Springvale Road, Glen Waverley, has been acquired by Glen Carpark Pty Ltd for $50,880,000. This sale not only sets a record land rate but also highlights the growing confidence in the reemergence of the suburban apartment market.
Currently serving as a public at-grade car park, commonly referred to as the Central Car Park within the local community, the site spans 6,114 square metres* and boasts three prominent road frontages totaling over 274 metres*. As the last major Glen Waverley Activity Centre Development Site, its prime location and substantial scale made it a highly sought-after asset.
The site was sold through Cushman & Wakefield's Leon Ma, Joe Kairouz, Daniel Wolman, Hamish Burgess, and Marcus Neill, with the sale process attracting a number of offers and generated over 100 campaign enquiries, reflecting strong market interest.
The competitive International Expressions of Interest campaign drew interest from various buyer profiles, including local and interstate private developers, institutional developers, Build-To-Rent developers and operators, and both established and new-entrant Asian developers.
Joe Kairouz commented on the transaction, stating, "The resilience of the suburban and metropolitan development site market, particularly for well-located sites offering scale, remains robust. This transaction highlights the ongoing demand for such sites, driven by the pressing issues of housing affordability and supply in Melbourne. The market's response underscores the critical need for quality developments in prime locations to address these challenges."
Leon Ma added, "Asian developers, both established and new entrants, along with their capital partners, continue to view Melbourne as a highly attractive investment destination for residential housing. The strong interest from this segment during the sale of 281 Springvale Road underscores Melbourne's appeal and the confidence investors have in the city's long-term growth and development potential."
The site's Commercial 1 zoning and location within a Major Activity Centre, combined with its proximity to well-established and planned transportation infrastructure, including the proposed Suburban Rail Loop (East), made it a standout opportunity. The sale price reflects a market-leading land rate of $8,322 per square metre, a testament to the site's premium value.
The settlement is set for 90 days, marking a swift conclusion to one of the year's most significant property transactions. This deal not only marks the largest apartment site sale in Victoria in 2024 but also reinforces the confidence in Melbourne's suburban apartment market, particularly for well-located sites offering significant scale and development potential.
*Approximate
