Sydney metro project causing Sydney CBD office strata sales surge

Sales in Sydney CBD strata offices are being drive by record low interest rates, limited supply and strong demand for investors and owner-occupiers.

Ray White Commercial agent Anthony Harris said that there is now strong demand from tenants looking to buy as they are being forced to move due to the Sydney Metro Project, which will require compulsory acquisition of 19 commercial buildings.

“I think we will see some occupiers having to get out of the CBD to locate their business due to the shortage of supply,” he said.

“On the leasing side we are seeing multiple tenants compete for space and in some cases tenant advocates offering to pay higher than the advertised rental in an effort to secure properties for their clients.”

Anthony completed two sales in a York Street building for $8.35 million, and one of them was on the first day of market.

The whole 541 sqm office space at level 2/33 York Street sold for $4.25 million on behalf of a private syndicate to an owner occupier who will use it as a medical business.

“The office comes with four car spaces and the sale price represents a rate of just over $7,100 per sqm, assuming a value of $100,000 per car space,” Harris said.

The other 545 sqm office on level six of the same building sold for $4.1 million to the Egyptian Consulate on behalf of Century 21 Australia chairman Charles Tarbey.

“This office comes with three car spaces, representing a rate of around $7,000 per sqm and $100,000 per car space,” Harris said.