Heidelberg block permit ready for eight storeys trades for $11.4 million

A permit-ready development site in Melbourne’s north east Heidelberg sold for $11.4 million this week.

The incoming owner, a local developer, snapped up 104-120 Mount Street (pictured, bottom, highlighted) on a 30 day settlement.

With plans for an eight-level complex comprising offices and 120 apartments (pictured, top), the 2376 square metre holding was offloaded by a China based builder, represented by Colliers International’s Hamish Burgess, Joe Kairouz and Jun Lai.

The sale price values every proposed unit at $95,000.

The property currently contains a double storey brown brick office.

It is next door to another eight level building.

“The sale of this permitted site, within the Heidelberg Activity Centre, highlights the strong and continually improving sentiment in the development site market as we look ahead to 2020,” Mr Kairouz said.

“In the final quarter of 2019, we have witnessed a significant spike in developer interest for opportunities both on and off market in Melbourne’s metropolitan areas,” Mr Burgess added.

“This interest has translated into a flurry of deals negotiated by Colliers International across the market in areas such as Heidelberg, Armadale, Brighton, Keysborough and Ringwood North.

“It is clear from this level of enquiry and the bidding we are witnessing that developers are gearing up for the next part of the cycle.”

Heidelberg is about 11 kilometres from the CBD.

The Colliers deal comes a fortnight after we reported that another developer paid $12.8 million for a nearby Eaglemont block on 5034 sqm.

That site, covering 25-31 Banksia Street and 437-439 Lower Heidelberg Road was not offered with a permit, and is zoned Residential 2, which would allow for a three storey structure.

The site spreads 2376 square metres in the Heidelberg Activity Centre.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.