Box Hill Motel soars $2m above price expectations
Any lingering market reservations were dispelled with the sale of the Box Hill Motel for $1.95 million above initial forecasts.
The 4041sqm property at 177 Station St, Burwood sold for $5.95 million to a Chinese developer after receiving 26 offers.
It was the biggest sale in the suburb for the year, overcoming the $4.3 million paid for 358-360 Burwood Highway in June.
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Price expectations for the property were between $4-$4.4 million.
Visitors arrive at the Box Hill Motel, Burwood.
Savills director Nick Peden says he can’t remember a listing receiving so many offers.
“It was the perfect recipe … we would never anticipate that many, it’s unprecedented really,” he says.
“To receive 26 offers to purchase the property, it is evident that buyers are out in force for well located landholdings with holding income and exceptional development potential.”
Asian buyers made up 70% of the interest, with half of those coming from overseas, Peden says.
“The Asian market was very attracted to that location,” he says.
“It’s a really, really good location, adjoins a fair bit of parkland there and in a great area near the Deakin Uni. The Box Hill area is really strong, and the fact that it’s got a really good underlying land (helped the sale).”
The property is on a block of 4041sqm.
The operating motel, which contains 23 rooms, has a lease in place until May 2020 and generates annual rental income of $175,534.
Peden says the sale is also a sign the Box Hill residential market is performing strongly enough to attract foreign interest.
This article from Leader Newspapers originally appeared as “Box Hill Motel sells nearly $2 million above price expectations after ‘unprecedented’ interest”.
