Shoppers aren’t the only ones interested in sales along the Scarborough Beach Road strip in Osborne Park, with investors and developers also keen on buying up.
The area is attracting interest from property buyers keen to be a part of its transformation from an industrial heartland to a retail and commercial drawcard.
A major factor conspiring against them, however, is the lack of listings.
Recent sales of the landmark Ikea site for a reported $19.9 million, and a former plant nursery on the corner of Hasler and Parkland roads for $16 million, show the level of demand in the area.
The 1.85-hectare Ikea site was sold to Acasia Investments Pty Ltd, a company run by private investor Jacky Mulani, the owner of the Araluen Golf Resort at Roleystone.
The 9,459 square metre nursery site, meanwhile, was sold to undisclosed investors off-market, who will likely redevelop the site for office space.
Savills divisional director industrial Max Jones said it was extremely hard to secure developable land, given the level of competition, but the area was well on the way to shaking off its industrial tag.
“Its prized land and listings are scarce,” he said.
“The zonings there permit a range of activities but buyers are finding they can’t afford to do anything other than retail bulky goods these days.”
Mr Jones said the conversion of Herdsman into an office hub had flowed through to Osborne Park proper, and more developers were considering building office space in the area because of its proximity to the city.
And it is understood the new owners of the Ikea site will be doing just that.
Once Ikea moves to its new purpose-built superstore on Ellen Stirling Boulevard in Inaloo early next year, Acasia is believed to be levelling the site to build a combination of office space and bulky goods retail.
Also active in the area is Primewest, which is developing a new Lexus dealership near the intersection of Scarborough Beach Road and Frobisher Street.
The group paid $7.27 million for the 8,000sq m site in February last year, which was home to a Spotlight store.
