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

INTEREST IN RETAIL PROPERTY SPIKES AS INTERNATIONAL BRANDS LOOK TO ROLL OUT IN AUSTRALIA

AN influx of international retail brands into Australia over the next five years are expected to push up demand for f...

MANTRA BOASTS OF SUCCESSFUL HOTEL INTEGRATION AS NET PROFIT GROWS 15 PER CENT

MANTRA Group (ASX:MTR) CEO Bob East has praised the performance of the company's new Honolulu Hotel as it posted ...

WHITEHAVEN TRIPLES EARNINGS, PAYS DOWN DEBT AFTER COAL PRICE TURNAROUND

THE HIGH coal price has allowed Whitehaven Coal to triple earnings and pay down a large portion of its debt in the fi...

BABY BUNTING BUOYED BY CLICKS AND BRICKS PERFORMANCE

BABY Bunting has grown sales 18.1 per cent to $135.1 million in the first half of FY17, sweetened by the opening o...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter