Skip Ribbon Commands
Skip to main content

News release


Local buyers are big players in Melbourne development site sales

JLL study shows 51 per cent of buyers by dollar value have been from local sources over the past 12 months

​MELBOURNE, 5 May 2014 – Local buyers continue to be a large contributor to Melbourne’s development market, according to a new study by JLL.

JLL has compared the buyer profiles of major development sites in Melbourne’s CBD, City Fringe, Docklands and St Kilda Road over the past 12 months. The study shows that 49% of the 39 properties sold from February 2013 to April 2014 were purchased by domestic buyers.

JLL’s Director, Sales and Investments, James Kaufman said, “Of the $1 billion in transactions over the past 12 months, 51% of buyers by dollar value have been from domestic groups.

“Of the 39 major site sales JLL recorded, CBUS’ purchase of 447 Collins Street for $91 million was the only land sale where the developer intended to undertake a commercial development.

“Generally foreign developers have a strong preference for sites that are offered for sale with the benefit of planning permits. Sites with permits make the assessment process significantly less complicated and remove uncertainty.

“Domestic developers have a much deeper understanding of the town planning process and are more comfortable with the risks associated with planning. Clearly this gives the local players the advantage when bidding for sites without planning permits.

“This is evidenced with the sale of 181 Fitzroy Street, St Kilda and 85 Spring Street, Melbourne. During both campaigns, the marketing attracted interest from foreign buyers, however the planning risk put the local developers in the best position to secure the sites.”

Grocon have since lodged a planning application for a 38 level, $300 million development including 370 apartments at 85 Spring Street. 

Active domestic developers in the past 12 months have included Grocon, CBUS, Central Equity, Little Projects, Schiavello, Pace and Caydon; with international developers including Aspial, UEM Sunrise, Hiap Hoe Limited, Far East Consortium and Chip Eng Seng. 

Total Number of Melbourne development site sales
Total Number of Melbourne development site sales.jpg

Total $ value of Melbourne development site transactions
Total $ value of Melbourne development site transactions.jpg