A commercial office development project marketed as Horizon North East at 226 Plenty Road, Bundoora has bucked the trend of reported concerns of rising interest rates as a number of owner occupier step in to secure properties within the development. Completed in 2021 by BAMFA & Rossi Constructions, the project consists of 10 buildings located within the Bundoora Uni Hill precinct.
Having been recently launched to the market in the first quarter of 2022, within 8 weeks, 8 of the buildings have been sold with totals sales exceeding $8,200,000 and average rate/sqm well exceeding $5,000/sqm.
“In the last 8 weeks we have sold 4 buildings to owner occupiers and 3 to investors”, commented Stonebridge selling agents Dylan Kilner and Max Warren, who are working on the sales process in conjunction with Jones Real Estate’s Sam Guest and Luke Peric.
The vendors are being advised by Mark Wizel’s Advise Transact.
Selling agents commented that “construction costs have surged between 20%-30% since the completion of the project and buyers feel that they are purchasing these buildings below replacement cost”.
“We have sold 3 of the vacant buildings to investors who are confident that they will secure tenants with the Bundoora Uni Hill precinct, boasting a 3% office vacancy rate.” – commented Mr Guest.
The project which adjoins the Nino Early Learning Centre also developed by BAMFA has been very well received by local SME businesses and investors.
“It’s a bit of a parochial buyer market out this way” said Mr Kilner. “We have been really pleased with the enquiry from the outset and we feel that it’s a great example of how a developer can be rewarded when they back themselves to build a product as opposed to only initially trying to sell it off the plan”, he added.
“Buyers have made specific comment to the quality offering that is “Uni Hill” – it’s not often that you get a shopping centre, all imaginable amenity, such as health, wellness and services as well as a brand outlet on your doorstep as a small office user”, said Stonebridge Property Group’s Max Warren.
It is anticipated that the project will be 100% sold within the next month according to the selling agents.