Two blocks of land at Kingston Foreshore have sold for $14.3 million at auction on Wednesday.
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The land will be the last released on the Peninsula for several years as other sites rely on the decommissioning and relocation of the Causeway Switching Station, understood to be at least
There were nine registered bidders for the two blocks which could each be developed for about 75 apartments.
The largest site at 2715 square metres sold for $7.35 million to local developers Madison and the second block at 2474 square metres sold to Canberra’s Pavilion Homes for $6.95 million.
Madison’s David O’Keeffe said the company planned to build a development targeted at the active adult market on the corner block he purchased.
He said Madison had always catered for the 45 to 50-year-old market in the territory.
“We were particularly attracted to the land in the peninsula as it’s not above the hustle and bustle of the foreshore,” he said.
“We think it’s a very unique site.”
Mr O’Keeffe said the development would be a mixture of one, two and three bedrooms with a high percentage of three bedroom en suite apartments - the type of product most attractive to downsizers.
He said the ACT government’s budget measures regarding stamp duty concessions for downsizers had also influenced the company’s purchase.
“That was a key factor in us buying this site, that’s the market we operate in,” Mr O’Keeffe said.
Following the delivery of the 2014/15 ACT budget the Over 60s Home Bonus replaced the pensioner Duty Concession Scheme.
Eligible downsizers will now pay as little as $20 for stamp duty for a property worth less than $595,000 and will receive discounts on the duty for homes valued up to $765,000.
The Peninsula is the newest site at the million-dollar waterfront playground of the Kingston Foreshore and is located across from the development in the harbour.
CBRE ACT managing director Andrew Stewart said it was a strong result on the back of the Campbell Section 5 auction which net the government $64 million a couple of weeks ago.
He said a few of the registered bidders had missed out on the Campbell land and were looking for other premium sites in Canberra to buy.
