Chinese developer Poly opts for townhouses on Bridge Road

But it also marks a departure from Poly’s Australian pipeline of apartment projects, with the Chinese developer planning to turn the 2047-square-metre site, currently housing shops, a commercial building and a car park, into luxury townhouses.

The 150-152 Bridge Road and 1-3 Allowah Terrace site, which has the famous Pelaco neon sign behind it, was marketed with two development options: a podium of townhouses with a 10-storey apartment tower above or a pure townhouse scheme of 41 dwellings.

Melbourne’s booming inner-suburban townhouse market has become increasingly attractive to developers, while apartment developments have become less attractive due to sluggish off-the-plan sales, perceptions of an oversupply in some pockets and a pullback  by foreign investors.

CBRE’s Lewis Tong, who negotiated the Richmond Hill sale alongside colleagues Mark Wizel, Josh Rutman and Julian White, said offshore developers were showing increased confidence in medium-density sites in the suburbs off the back of record low interest rates and high clearance rates.

“We believe that this trend will continue throughout the first half of 2017,” Mr Tong said.

It’s the second time in just over a year that the Richmond Hill site has sold. In September last year it was bought for $11 million by a company called Allowah Terrace, but was put back on the market – prior to settlement – in June. Title records list the owners as Maria and Jill Sosso of NSW.

The sale comes as Poly completed its first Australian development, Claremont Manor in South Yarra, an $80 million high-rise with 285 apartments.

“We have delivered a quality building we are very proud of,” said Poly Victoria director Yuan Tao.