Low vacancy rates are a reality for nearly every sector in the residential and commercial property market across the country, as both current and speculative supply is struggling to meet demand. Developers have been seizing the opportunity to increase this supply, activating projects to meet the market’s appetite for quality, high-density development.
Enter Como, an affluent riverside suburb located 6km from the Perth CBD that is, customarily, held tightly by investors and developers alike. That tendancy is only exacerbated by such a constrained property market. Alas, a premium 3,483 sqm landholding at 125 Melville Parade is bucking the trends. Situated directly opposite Como Beach, the landholding is being offered to prospective buyers by CBRE’s Derek Barlow and Lachlan Andrew, with Offers Invited before the 10th of August.
“A property of this nature provides developers an opportunity to secure a premium site of scale in a highly desirable, amenity rich and affluent location,” stated Mr. Barlow.
125 Melville Parade, Como, WA 6152
Located within the Como Neighbourhood Centre precinct, the property is zoned Mixed Use, and STCA, there is potential for more than six levels of construction. CBRE have advised that they expect residential developers looking to construct high-quality, luxury apartments to be very engaged with this sales campaign.
“Sites offering the opportunity for panoramic river views from all levels of development, within five minutes of the CBD are certainly rare.
"We expect this well-configured lot that allows for substantial building height and development yield to attract a high level of interest."
That said, the site is currently occupied by a mix of office and hospitality tenants that offer strong holding income and a history of long-term tenant tenure, so a buyer looking for a stable asset that provides continued return will be satisfied by the product as-is. In that sense, much of the value in this property comes from the freedom it offers; an investor can utilise this space in a multiplicity of ways.
According to reports, the residential vacancy rate across Perth was recorded at 1.1% back in May, indicating that tremendous pressure is being placed on the residential market. With more buyers leaning towards apartment living, particularly in locations where premium views and amenity are being offered, 125 Melville Parade serves as an ideal opportunity for a developer to lay the foundations for a quality riverside complex.
But whether it's redevelopment they opt for, or the security of retaining the current leases to hold, this property is sure to impress its new owner.
