Clovelly homeowners team up for $9m development site windfall

Two Clovelly homeowners are celebrating their windfall after a Sydney developer splashed out $9 million on their humble neighbouring properties to make way for apartments.

The Barua Group set a new record for the area after it purchased the two Californian bungalows at 31 and 33 Melrose Pde, which had an individual value of about $3 million each.

So the families, who weren’t available to comment, have made 50% more than they would have if they’d sold them separately.

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CoreLogic records show the owners of No. 31 had bought their three-bedroom home on a 300sqm block for $705,000 in 1998.

The family at No. 33 bought their four-bedroom home on a 481sqm block for $2.445 million in 2012.

33 Melrose Parade. Clovelly, when it last traded in 2012.

The combined site area of 959sqm — zoned Medium Density with a 12m development height limit — close by the beach proved an attractive proposition.

CBRE agents Nicholas Heaton, Gemma Isgro and Paul Grasso managed the competitive sales campaign, which attracted the interest of more than 460 developers.

The site is slated to accommodate seven three-bedroom apartments – reflecting a record individual unit price of $1.285 million.

Heaton says the strong interest received highlights the growing demand for boutique development projects in Sydney’s eastern suburbs.

… but the land was worth a fortune.

“Developers who have been traditionally focused on larger projects in the western suburbs are now looking to undertake smaller, more boutique projects in the east — capitalising on the growing number of downsizers looking to buy apartments in the area,” Heaton says.

“Growing demand for this lifestyle change, coupled with the limited availability of suitable development sites, is driving up both unit prices and land value.”

Isgro says the rarity of the offering underpins strong buyer interest from local, domestic and offshore developers.

“It is rare to find development sites such as this in Sydney’s sought-after eastern suburbs that are positioned close to the coast line and offer ocean views,” Isgro says.

This article from the Wentworth Courier originally appeared as “Owners of Clovelly Californian bungalows celebrate $9m windfall”.