Landowners are capitalising on developer interest in the City of Melville, with neighbours joining forces to amalgamate lots and create medium-density residential opportunities close to Garden City Booragoon.
Landowners are capitalising on developer interest in the City of Melville, with neighbours joining forces to amalgamate lots and create medium-density residential opportunities close to Garden City Booragoon.
The AMP Capital-owned shopping centre is subject to a $750 million redevelopment plan, which not only comprises extra retail space, but also a significant residential component.
AMP has partnered with TRG Properties to develop the City Gardens apartments, a 122-apartment development to be launched for sale later this year.
However, it is not just the institutional owner that is planning residential projects around the mall.
Landowners in the area have been seeking to tap into developer interest in the area, with medium-density apartment projects springing up along major thoroughfare Riseley Street and other surrounding streets.
LJ Hooker Applecross principal Nick Wallace said interest across the City of Melville from developers was high, particularly in areas close to the shopping centre.
Mr Wallace said he recently sold a 1,447 square metre plot that was an amalgamation of two lots on Marmion Street, while another property on Riseley Street went to auction late last month.
Although the auction did not find a buyer, Mr Wallace said it attracted a strong turnout, mainly local landowners, and he expected the plot to sell shortly.
Mr Wallace said the interest in land in the City of Melville was driven by the town’s new local planning scheme.
The City of Melville has been working to unlock key areas within its boundaries for redevelopment since 2012, with a new planning scheme recently approved by the Western Australian Planning Commission and endorsed by Planning Minister Donna Faragher last month.
“The council’s new planning guidelines address the under-development throughout the area surrounding the Garden City shopping centre,” Mr Wallace said.
“The shopping centre’s $750 million redevelopment will make it a showcase retail centre in Perth, increasing the amenity to support more residents through the catchment area.
“The area really is going to be a focal point for the new wave of development.”
He said the process to amalgamate lots was often daunting for landowners, but those that did were reaping the benefits.
“You have got to have neighbours that talk to each other, and you’ve got to be able to understand the town planning scheme yourself,” Mr Wallace said.
“It’s not easy, but the landowners are recognising that they’ll get a premium if they sell together.
“Once you explain that to them, it’s pretty straight forward.”
He said it was clear that the City of Melville’s development push was unlocking value for landowners.
“What I like about the one on Marmion Street, they bought on a busy street 30 years ago, and it would have always been a cheaper-end property,” Mr Wallace told Business News.
“If they bought in the streets behind, which would have been the better streets at the time, it would still be worth $800,000 to $900,000.
“Now their land is worth double that.”
