Savills Melbourne has just sold yet another development site within Melbourne’s most dynamic suburb, Box Hill, to a local development group with Chinese connections. The transaction took place off-market, following a recent spate of sales along Prospect Street as the precinct continues its remarkable transition from commercial to high-rise residential development.

The property at 31-35 Prospect Street is a rectangular site of 1,653sq m backing onto the railway line in central Box Hill, and is currently used as an open air car park generating income of approximately $45,000 per annum.

The property is situated within the rapidly changing “Major Development Precinct” of Box Hill with development height potential of at least 20 levels.

According to Clinton Baxter, who brokered the deal with colleague Nick Peden of Savills CBD and Metropolitan Sales, the property sold at a price of $13,500,000 reflecting an extremely strong land rate of $8,166 per square metre.

Mr Baxter said that the site was snapped up by an under bidder following the agency’s recent $12.19m sale of nearby 15-17 Prospect Street, and $22.25m sale of 843 Whitehorse Road.

“We are experiencing unprecedented developer interest in Box Hill as the market seeks to take advantage of the greater height allowances within the Activity Centre and the huge demand for apartment living within walking distance of Box Hill Central Shopping Centre,” Mr Baxter said.

“Based upon current buyer demand, we could sell $500m worth of land in Box Hill if it was available for sale, such is the strength of the market”.

Mr Peden said that “The property has been held by a local private family for many decades, with the owners having originally purchased three consecutive houses in the street long before it was rezoned for commercial use in the 1980’s.”

“It is a significant windfall for the owners, and given the price offered, they simply could not refuse.”

He said the location in close proximity to Box Hill Central Shopping Centre and Railway Station, Box Hill Institute and Box Hill Hospital were attributes that lead to the rapid off-market transaction.