Melbourne suburban office sales skyrocket to an all-time high: Colliers International

Melbourne suburban office sales skyrocket to an all-time high: Colliers International
Jonathan ChancellorDecember 7, 2020

Melbourne’s metropolitan office market has kicked off 2015 strongly.

It followed yet another record year of sales totalling more than $1 billion, according to Colliers International. 

The Colliers International’s latest Metropolitan Office Research & Forecast Report, Dial for Demand: Enquiry for Metro Assets on the Rise, found last year was a record in terms of calendar year sales volumes in the Melbourne metro office market, with just under $1.1 billion worth of sales recorded. 

“To put this in perspective, this figure is slightly above total sales volumes for 2012 and 2013 combined,” Peter Bremner, Colliers International national director of investment sales, said.

He noted suburban office sales above $5 million skyrocketed to an all-time high of $1,053,000,000 in 2014.

It was a substantial jump on the $607 million worth of metropolitan assets sold during 2013, which was also a record high at the time.

Source: Colliers International

Their records show there were 52 individual transactions above $5 million last year, compared to 38 in 2013.

Buyer activity was especially prevalent in the city fringe region, where 41 percent of the 53 deals occurred, followed by the outer east region were 23% of sales occurred. Over 55% of assets were sold to private investors, however in value terms, these investors accounted for 35% of total sales volumes.

Sales by Colliers International in 2014 included:

  • 850 Whitehorse Road in Box Hill, sold for $12.85 million to a local developer for residential redevelopment;
  • 1 Palmerston Crescent in South Melbourne, sold for $14.35 million to a Malaysian investor;
  • 187 Todd Road in Port Melbourne, sold on behalf of Challenger, to Podco, for $26.25 million;
  • 200 Victoria Street in Carlton, sold off-market for $42.3 million to Australian Unity;
  • Botannica 8 at 576 Swan Street in Richmond, sold for $46.5 million to 360 Capital.

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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