606 Elgar Road
Box Hill North, VIC 3129

Overview

606 Elgar Road, Box Hill North VIC 3129

This property presents a rare and exceptional opportunity for developers, Airbnb operators, and savvy investors seeking to enter the hotel accommodation market within a thriving and rapidly growing suburb. Situated on a corner block of approximately 700 square meters, this site benefits from an approved plan and permit for the construction of a hotel or motel accommodation business featuring 10 rooms, a conference hall, and basement parking accommodating 7 vehicles. The development spans four levels, including the basement, offering substantial potential for a lucrative hospitality venture.

The planning permit has been endorsed by the local council after a rigorous four-year process involving extensive revisions and consultations, allowing the fortunate buyer to proceed directly to the building phase without delay. This strategic location is nestled between the Grand Mercure Hotel in Doncaster and the upcoming second Chinatown in Melbourne, positioning it perfectly for entry-level hotel entrepreneurs seeking an affordable capital investment in the accommodation industry.

Current hotels in the nearby Box Hill and Doncaster areas command an average room rate of $150 per night. With 10 rooms operating at an estimated 75% occupancy rate, the potential annual turnover is approximately $410,000. Additionally, the conference or office room on the top floor is projected to generate an extra $50,000 per annum, bringing the combined turnover close to half a million dollars annually. This opportunity is particularly attractive for those already engaged in the accommodation business, offering a promising expansion prospect.

Box Hill North is a flourishing neighborhood known for its vibrant community atmosphere, excellent educational institutions such as Koonung Secondary College, convenient shopping centers, parks, and recreational facilities. The existing house on the property comprises six rooms, all currently fully leased, generating a monthly rental income of approximately $5,000. Given the strong demand in the rental market, rental income is expected to increase, providing further potential for enhanced returns.

The vendor is also open to assisting the new buyer in establishing the hotel business, offering additional support to facilitate a successful launch. This property represents a unique chance to secure a prime development site with significant income-generating potential in a sought-after location.

Location