Bidding wars are arising whenever developable blocks hit the market, as Adelaide’s critical land shortage drives desperate buyers to pay a premium to secure prized parcels.
Property experts say land is a hot commodity at the moment as it’s so rare, especially in areas closer to the city.
A 4770sqm Klemzig property over four titles on North East Rd recently sold for $6.6m after 18 developers put a bid in for it – eight of which were over $6m.
Selling agent Bradley Foster, director of Home Real Estate, said when it sold that “if it’s developable land, the appetite for it is massive”.
Two more large land sites at Klemzig, just 8km from the city, are expected to attract just as much attention.
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The Klemzig properties at 24-46 Boucaut Ave & 67-75 Windsor Grove are expected to attract a lot of interest.
Combined they span a whopping 14,591sqm.
The combined landholding spans a whopping 14,591sqm and can be purchased either as a whole or separately.
Given their zoning, the two properties at 24–46 Boucaut Ave and 67–75 Windsor Grove – which are 6621sqm and 7970sqm respectively – can be developed into low-rise or medium-density housing as well as employment and community services.
JLL’s Jack O’Leary expected a wide range of buyers to show interest in the sites, which could fit 70-plus homes depending on their size and council approval – that’s three times more than the roughly 20 that would fit on the North East Rd site.
“The scale of the combined land holding allows for a significant residential-anchored development or alternative living sector uses in a tightly held and well-established area,” said Mr O’Leary, who is selling the properties with Claudia Brace and Tom Love.
“The land holding offers developers and occupiers the opportunity to capitalise on the convenient location relative to the CBD and record-low residential vacancy rates of 0.8 per cent.
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The Klemzig properties at 212A and 214 North East Rd and 5 and 7 Swan Ave recently sold for more than $6m.
Houses are likely to be built on the site.
“These opportunities in inner city locations are now considered extremely rare.”
Mr O’Leary said demand for large sites like this one was increasing, especially given first-home buyer and investor appetite for new and finished product was also on the rise.
“I haven’t really seen this level of demand previously,” he said.
“The last couple of campaigns we’ve had, the demand has been unprecedented from developers.”
Mr Love said the properties’ positions also made them particularly appealing.
“Their established neighbourhood setting adds immediate value that greenfield sites simply cannot match,” he said.
Expressions of interest for the sites close at 4pm on September 11.
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