Commercial Property: Sale of development site in Medowie shows confidence in Hunter region

STRONG RESPONSE: This 17.73-hectare site in Medowie was secured by a local developer within 10 days of being released to market.
STRONG RESPONSE: This 17.73-hectare site in Medowie was secured by a local developer within 10 days of being released to market.

Colliers International’s Peter Macadam said the fast sale of a development site in Medowie was indicative of the confidence being shown in the Hunter region.

Mr Macadam marketed 688-714 and 730 Medowie Road through an expressions of interest campaign that was set to close on June 21.

But the 17.73 hectare property sold within 10 days of being released to the market.

He said there was strong interest in the site, which offered the opportunity to develop over 200 residential lots within close proximity to shops and schools.

Mr Macadam said a lack of supply as well as location was one of the driving factors in the quick sale.

“Ten days after we launched it, it had exchanged,” Mr Macadam said.

“For a site like that, that’s rare. It was a large englobo development site, which is basically a paddock that can be subdivided to create a new residential community subject to council approval.

“We targeted a number of active developers in the region and the positive was the confidence that all of the developers have in the Hunter.”

Over 35 enquiries came within the first two days of the property being launched.

“There is great confidence in the Hunter and not a lot of sites that can be developed in the short term,” he said.

“There is a lot of zoned land but with hurdles in developing it, but that wasn’t the case with this property. There is a supply shortage and confidence in the region.”

The site was bought by a local developer for an undisclosed amount but “interest was very broad”.

“The overriding message from the development community is there’s no end to their interest in our market,” Mr Macadam said.

“We marketed The Store site in the city and there was national interest for that and developers looking in our market, if they miss out on one they are generally asking us what else we have got.

“That extends out to Belmont. We had a fantastic result last year with the Belmont Bowling Club, so interest is not specific to the CBD and the Medowie and Belmont results were examples of that.”