$7.08m for strip of dirt next to Bunnings
A patch of dirt in the heart of Thomastown has sold for a record $7.08 million.
The price is the highest paid for vacant land less than 2ha in the suburb, according to CoreLogic records.
A Melbourne developer snapped up the rare 1.492ha block at 15 Dalton Rd that came with planning permits for a service station and a 10-unit office warehouse development.
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CBRE’s Daniel De Sanctis says the development site attracted more than 100 would-be buyers and a selling price of $474.50 a square metre.
The approved planning permits were a major attraction because they removed the risk of obtaining a development application and incurring potential holding costs, he says.
Another drawcard was the block’s location in an industrial zone, next to Bunnings Warehouse and near major retailers including Harvey Norman, The Good Guys, Baby Bunting, Petbarn and JB Hi-Fi.
On the border of the Metropolitan Ring Rd, the property is about 13km from Melbourne’s CBD and 22km from Melbourne Airport. It has easy access to public transport, the Hume Freeway and Sydney Rd.
De Sanctis says the area continues to attract strong tenant and owner-occupier demand.
“This is a thriving, tightly held Thomastown pocket with an excellent mix of large format retail, smaller industrial units and larger industrial occupiers,” he says.
The result highlights the value of land for development in Melbourne’s north where demand was outstripping supply, he adds.
This article from Leader Newspapers originally appeared as “Developers splash $7.08 million on patch of dirt resembling airport runway in Thomastown”.