Over two acres of Surrey Hills land has hit the market, in a move that is expected to attract significant interest from luxury residential developers as well as aged care/retirement groups.
The site, known as “Surrey Gardens”, encompasses 9,147sqm of land and boasts in excess of 382m of street frontages to Kent Road, Middlesex Road and Durham Road, and it is positioned in Surrey Hills’ most exclusive enclave, with high value surrounding residential homes and access to extensive parklands including Mary MacKillop reserve opposite the property.
JLL’s Director of Capital Markets Jesse Radisich, Executive Director Josh Rutman and Associate MingXuan Li are handling the sale process on behalf of a not-for-profit group who have owned the property for many years, and will be utilising the proceeds of the sale to progress their operations. The agents did not comment on the suggested price or the exact details of the vendor, but a comparable site in Camberwell with the same zoning recently sold for close to $14m and around $2,800/sqm.
Mr Radisich said “It goes without saying that the opportunity to secure a landholding of this scale in such a sought-after location does not present itself every day. This particular pocket of Surrey Hills is regarded as the suburb’s most desirable, and any redevelopment of the site will capitalise on the exceptionally well-connected location and wide, tree lined streets”.
The site is positioned on the cusp of neighbouring suburb Canterbury, which commands an even higher premium based on recent residential sales data.
“Whilst the median house price in Surrey Hills has increased some 20% over the past 12 months alone to $2,250,000, the value proposition is stark when compared to adjoining Canterbury which has a median house price of $3,425,000”, he added.
According to JLL, the site will hold significant appeal to residential developers, and will suit a luxury townhouse outcome given the Neighbourhood Residential Zone and there is a townhouse scheme prepared by Cera Stribley architects. However, aged care/retirement groups have been particularly active in the last 12 months and are expected to show strong interest, particularly given the rarity of landholdings of this scale in Melbourne’s leafy inner east and the aging population within the immediate locale. It is anticipated that some of the existing character buildings on site could be utilised by these groups and incorporated within a future development to provide a unique identity for any future offering.
Surrey Hills is a very tightly held residential location, and given the lack of significant landholdings, there is a very limited supply of residential projects. In an example of depth of demand in the area, a permitted project on nearby Norfolk Road sold out off the plan in a matter of months.
Expressions-Of-Interest for 1-9 Kent Road & 19-35 Middlesex Road, Surrey Hills close on Thursday 21 April 2022 at 2pm.
Contact Jesse Radisich
