Southbank development site with rare approval for 69-level skyscraper hits the market
A three-level office building in Melbourne’s Southbank could sell for more than double its last sale price four years ago – thanks to its approved plans for a 69-level tower.
The site at 55 Clarke Street, totalling 1,790 square metres, has obtained a CBD gateway planning permit for a 69-level, 565-apartment mixed-use development designed by local architects Elenberg Fraser.
The sale price is expected to be north of $75 million with comparable permitted sites in the CBD trading at more than $125,000 an apartment, while in the fringe CBD markets, comparable projects are being valued at between $80,000 and $100,000 an apartment.
The last sale price was $30.4 million in September 2014, according to Domain Group records. The purchaser was Newcity Land (One) Pty Ltd, who is still the current owner.
“It is one of the few development sites available,” says Bryson Cameron, from Colliers International, who is selling the property.
“We expect interest from both Australian and international buyers.”
Mr Cameron says that there is more than $7 billion worth of private and public infrastructure investment within Southbank’s future supply pipeline through to 2021.
“This includes a combination of commercial and mixed-use projects adding to the public amenity and fuelling local employment,” Mr Cameron says. “This permit-approved development will represent one of the most striking residential towers along the fringe of Melbourne CBD and South Melbourne.”
The permit is one of the last of its kind, thanks to planning law changes in Melbourne’s CBD. Image: Supplied
The site is located in middle of the South Melbourne lifestyle precinct, the Melbourne CBD and Crown Casino entertainment complex and the Melbourne arts confines, in what is considered a preferable location for connected living.
“The planning permit is extremely valuable, given it has a plot ratio of 30:1, which cannot be repeated,” co-agent Trent Hobart, from Colliers International, says. “Planning laws have changed across the CBD, decreasing to a plot ratio of 18:1.
“There has already been a distinct lack of sites available for large scale projects over the past two years, a trend which will only exacerbate in the near future.
“This will lead to a substantial decrease in supply of apartments across central Melbourne and with the residential vacancy rate sitting at a dangerously low level of around 2 per cent, the buyers for sites like 55 Clarke Street with large scale residential apartment potential will be handsomely rewarded with price growth.”
Melbourne’s public transport network and parks such as the Royal Botanic Gardens neighbour the site, which is also close to public and private schools.
International expressions of interest close June 13.
