Offshore buyers setting up presence in Melbourne's office market

Melbourne’s office market is seeing much activity from offshore buyers, according to recent sale deals by Colliers International.

To illustrate the point, a 450 sqm freestanding office and retail building at 318 King Street was bought by a private investor from China for circa $5 million within two weeks of its listing. 

The deal was brokered by Colliers International’s team of Oliver Hay, Daniel Wolman and David Sia. 

The property is a two-level building on a 231 sqm site with King Street frontage and rear access via Eagle Alley. 

Hay said the buyer intends to lease out the property in the short term before occupying it. The same buyer earlier bought a development site in the nearby area.

Another recent sale was that of Level 2, 21 Victoria Street for $1.395 million to an offshore developer looking to establish themselves in the Melbourne CBD.

“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 are keen to set up a physical presence,” said Hay.

“Of five strata office floors sold by our team in the last two weeks in the Melbourne CBD, half have been sold to offshore groups looking to establish a physical presence for themselves in Melbourne.