Property developer Tim Gurner has purchased a 1550sq m permit approved site in South Melbourne, as the developer says the fundamentals in Melbourne’s inner suburbs remain strong.
A former church occupies the recently acquired South Melbourne site, which allows for 44 apartments and six heritage townhouses within the structure.
Gurner purchased the 77 Park Street site for around $10 million.
The purchase represents Gurner’s fourth project in South Melbourne, a suburb the developer identified in 2016 as “a key strategic focus for its luxury owner occupier product”.
Gurner said South Melbourne remains a strong focus for the company providing an opportunity to deliver stock to the market in a suburb with “sustained pent-up demand”.
“After witnessing the increasing demand for these types of apartments off the back of our first three projects here, we have been keeping a close eye on South Melbourne ever since,” Gurner said.
“The constant negativity from government, regulators, banks and the media has created a false economy of uncertainty, however when selecting our sites we try to block out the noise and look at the market fundamentals.
“And the fundamentals in the inner suburbs of Melbourne remain strong,” Gurner said.
“We still have 150,000 new people moving here each year, vacancy rates continue to hover around a record-low of 1.5 per cent and supply has fallen off a cliff.
Given these factors, Gurner says he believes property prices will jump again in the next 18-24 months.
The latest acquisition was brokered by Knight Frank’s Ed Wright, Stephen Kelly, and James Thorpe.
The developer says the 77 Park Street purchase will add $50m to the developer’s $5.5b portfolio once complete.