OFFSHORE INVESTORS DRIVING OFFICE DEMAND IN MELBOURNE

Written on the 16 June 2016

OFFSHORE INVESTORS DRIVING OFFICE DEMAND IN MELBOURNE

OFFSHORE buyers making their mark in Melbourne are driving growth in the CBD office market, according to Colliers International.

The property group's Melbourne City Sales team has recorded particular interest among Chinese investors and developers looking to establish a physical presence in the CBD.

Colliers International agents Oliver Hay, Daniel Wolman and David Sia recently sold a 450sqm freestanding office and retail building at 318 King Street to a private Chinese investor for $5 million. The property was sold within two weeks of being listed on the market.

Hay says the buyer intended to lease out the property in the short-term, before setting up a premises and owner-occupying.

"We are finding a lot of the offshore buyers, Chinese private investors and developers in particular, are also wanting to set up offices here as well," Hay says.

"A big theme in this sector of the market at the moment is that these purchasers are not just buying development sites, they're buying offices as well, as they're keen to set up a physical presence.

"A lot of these groups traditionally like to buy office space to occupy, as opposed to leasing space. This has lifted demand for boutique office buildings and strata office floors."

Hay says out of the five strata office floors sold by the team over the last two weeks in the Melbourne CBD, half have been sold to offshore investors.

"Melbourne, and Australia more broadly, is a strategic play for these offshore groups, who are looking to establish themselves here for the long term," he says.

"It's not just about one project, it is about acquiring a pipeline of projects and establishing a permanent presence."

An offshore developer also recently snapped up level 2, 21 Victoria Street for $1.395 million to establish themselves in Melbourne.

 


Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter