A bidding war broke out between three bidders as 16 in-one-line two-bedroom apartments in Dandenong sold for $3.62M after successful post-auction negotiations at 29 Stud Road.
The property, that sat on a 2,013sq m* land offering under RGZ2 zoning opened the door to a medium density development to 13.5 metres, subject to council approval.
The asset was marketed and sold by Ray White Commercial Glen Waverley Managing Director Ryan Trickey and Commercial Sales Agent Ben Ainsworth.
Mr Trickey said there was mixed interest as the property, on the market for the first time in 45 years, appealed to several buyer groups.
“Investors looked at yield, developers looked at highest and best use, and groups (like the buyer) looked at value add. This ranged from the high $2M to low-to-mid $3M,” he said.
“There was a genuine buzz around the auction, and it took 24 bids before the property was in a position to be sold, and it went to a commercial ‘re-conditioner’ who’ll renovate the units and add value to the site.
“The property provides a strong reliable income and offered financial security and at fully-leased rental, the property produces $218,140 p.a. with only one vacancy on-site right now.
“Being so close to amenities like Dandenong Plaza, Dandenong Market and the train station means there’ll always be a strong tenant demand for young families and professionals alike.”
Mr Ainsworth said Dandenong was a proven re-development precinct with existing permitted construction underway in the local area.
“Being just 30km* south-east of the Melbourne CBD, the property is within walking distance to all central Dandenong infrastructure,” he said.
“It offers excellent access to the Eastern Freeway, Monash Freeway and benefits from Dandenong train line and buses.
“Dandenong has become such a large residential and commercial hub and a strong future is being created for the suburb.
“Healthy population growth, commercial developments, State Government backing and favourable development zoning changes means the Dandenong economy is booming, there is so much activity locally that the future looks very positive.”