Premium Richmond site sells well over reserve price

The property market is still strong in Melbourne as a premium Richmond site recently sold for $1,955,000 million to a local investor, a massive $355,000 above the reserve price.

Situated at 17 David Street in Richmond, this site comprising of 465 square metres is in close proximity to major amenities such as Victoria Gardens Shopping Centre, restaurant and retail precincts as well as trams that provide quick access to the CBD via Victoria Street and Bridge Road.

The site also allows for flexible mixed use zoning and provides strong future development potential due to its location in the rapidly growing and evolving Richmond precinct which sits just 3km from the Melbourne CBD.

There was strong interest from both local and offshore developers at the onsite public auction which was transacted by Julian White, Chao Zhang and Scott Orchard from CBRE, even though the site has a lack of certainty for height potential.

The auction immediately started off strong with the first bid immediately placing the property ‘on-market’. Mr Zhang noted that “this provides a clear example of the seriousness and depth of the buyer pool in the current market.”

Altogether, this Richmond site received over 80 enquiries from interested parties and multiple groups and the final bid ended up more than 20 per cent over the reserve price, highlighting that developers have confidence in Melbourne’s inner city market.

Richmond is a popular spot to live for professionals and students alike due to its great inner city location and close proximity to shops, restaurants, schools and universities as well as public and private hospitals.

Week ending 12 July 2015, Melbourne had an auction clearance rate of 77 per cent, the same as last weekend and up from 69 per cent this weekend last year. 507 auctions were reported this week, with 392 properties selling.

Melbourne’s property market is not going to slow down anytime soon, with the number of auctions over the next two weeks expected to increase with an average of 750 auctions per week.
Published on 13th of July 2015 by Marty Stanowich
Marty Stanowich
Marty Stanowich

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