8 Bidders fought it out at a PropertyFox Auction for a Boutique site in Lane Cove – investors and developers pushed the price of the 3 adjoining retail properties at 38-42 Burns Bay Road, Lane Cove at Auction on the 22nd of June smashing the reserve by $2.225m over 33% – with the property eventually selling for $8.925m to a local developer, well above the vendor’s expectations – showing a yield of 0.94% or $11,463 per sqm of site. According to a concept scheme this equated to a potential per unit site value of over $530,000, a raw site record for Lane Cove.
Michael Wydeman, Director of PropertyFox said that while a handful of surrounding sites offered to the market in the area had been developed over recent years, none had been on offer right in the heart of the village – offering younger professionals and downsizers alike frontage to the main strip and amenity of the village shopping area adjoining Lane Cove Plaza and metres from Woolworths and Coles. Some of our interested developers believe this unique aspect of the site will fetch premium apartment prices in the market.
Tim Fox, Director of PropertyFox said the appetite from developers was unquenchable in key locations. We are seeing strong demand for both raw and approved sites in the Sydney CBD, Fringe and Lower North Shore. Asian developers are still actively chasing sites and prepared to pay a premium.
With the imminent redevelopment of the Rosenthal car park across the road – boosting car spaces by 284% and Coles’ relocation along with Aldi, Lane Cove village is set to see its biggest rejuvenation in decades. With some retail tenants surrounding the property paying $1,400-$1,900 per sqm the retail strip is one of the most vibrant on the Lower North Shore.