Chinese family buys office building in inner-east Melbourne for $6.18 million

A Chinese family has acquired a Balwyn freehold property for $6.18 million, nearly $3 million more than its last sale three years back, reinforcing the strong demand for strategic strip retail investments in Melbourne. 

The sale of the 701 sqm property at 313-315 Whitehorse Road in the inner eastern suburb of Balwyn was brokered by CBRE’s Josh Rutman, Rorey James, Mark Wizel and Benson Zhou.

The property was sold with existing leases to bedding retailer Back to Sleep and creative agency Web Silk on a WALE (weighted average lease expiry) of four years. The tenancies provide an annual income of $376,000 net. 

The sale price translates to a building rate of $8,819 per sqm – one of the strongest rates on record for the area, according to the media release.

James linked the strong result to continued buyer confidence in Melbourne’s inner east. 

“The transaction provides further evidence that strip retail investments outside Melbourne’s prime retail precincts continue to be coveted assets, with these properties consistently achieving prices far above long term averages,” said James.