Expanding Owner-Occupier Secures Significant Kilsyth Industrial Site for $13.5 Million

Kilsyth South sale highlights competition for low-coverage sites with future expansion potential.   

A significant 2.78-hectare industrial landholding in Melbourne’s East has been snapped up by an expanding owner-occupier for $13.5 million, underscoring the sustained demand for developable sites in established, well-connected precincts.

Located at 259-261 Colchester Road, Kilsyth South, the property features a 1,922 square metre refurbished office and functional warehouse facility, situated on a low-coverage allotment that offers 2.03 hectares of prime developable area.

Sold with vacant possession, the purchaser plans to further develop the Industrial 1 zoned site to support ongoing operational growth, reinforcing the continued shift towards owner-occupiers securing land for long-term use amid constrained supply.

Colliers Director | Industrial & Logistics, Richard Wilkinson, said, “Achieving a $13.5 million result for this property highlights the continued strength and resilience of the Melbourne East industrial market.

“Opportunities to secure a footprint of this size, particularly with over two hectares of developable land and immediate vacant possession, are exceptionally rare in this highly tightly held precinct.”

The property features a substantial 93-metre frontage to Colchester Road and sits across two titles, offering strategic flexibility for the incoming owner.

 Jonathan Mercuri, Colliers Director | Industrial & Logistics, added, “The purchaser recognised the strategic, long-term value of the site’s location.

“Positioned just 300 metres from Canterbury Road, the property benefits from outstanding connectivity to major arterial networks, including Dorset Road, Mountain Highway, and Eastlink, making it a highly logical move for an expanding operation looking to future-proof their supply chain.”