Investors and developers head to Melbourne suburban office markets, showing confidence in non-CBD commercial real estate, the Australian Financial Review (AFR) reported.
Low vacancy rates, rising rents, and the value of land spurred the skyrocketing of interest, the AFR said.
The South Melbourne office market is a dream for investment: two small offices sold for $ 18 million in July and August.
At 34 Eastern Road, Dimitrios Tzouvelis of Valeo Construction sold a vacant two-storey building for approximately $ 10 million to developer H.CO Property, at a land rate of nearly $ 12,000 per meter square. It sold for the last time for just over $ 6 million in 2015.
At 100 Park Street, south of Melbourne, a three-story Rescom Mortgages office building is sold with a vacant property to a local buyer for $ 8.088 million at an auction run by Julian White, Dylan Kilner and Chao Zhang from CBRE.
"South Melbourne is now the market of the periphery of the cities most in demand. Access to the seaside suburbs, St Kilda Road and Melbourne's central business district, as well as to its famous cafes, is what makes it so attractive for all types of business. buyers, "said Kilner.
Leo and Rose Blake also sold a multi-storey office building at 3-7 Hamilton Street in Mont Albert for approximately $ 18 million after paying $ 13.4 million in 2007, reported AFR agency.
In Malvern East, Paul Huggins, director of the Momentum Wealth Management Group, sold a two-level office space for about $ 13 million.
Sales took place after CBRE announced a 46% decline in the value of metropolitan real estate sold in the first half of the year. However, after the federal election, there had been a series of transactions in the order of $ 10 million and over, CBRE officials said.
Top suburbs:
Midland
,
St Mary
,
Belmont
,
Hebersham
,
Geelong West
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