La Trobe Street site goes to Chinese buyer in record sale

The purchase of a Melbourne CBD property for $5.6 million has set a new land value record for the precinct at $18,604 per square metre.

The three level office and retail building at 337-339 La Trobe Street was sold to a private China based buyer in a deal handled by Nick Peden and Clinton Baxter of Savills.

Savills received 19 offers through an expressions of interest sales process. It was sold unconditionally with a 42 day settlement period to the private offshore group.

Peden and Baxter received about 230 enquiries for the property.

"There are many reasons behind this outstanding result, chief among them being the property’s ideal central CBD location, three street frontages, versatility of use, outstanding redevelopment potential and the low Australian dollar which is providing exceptional value for off-shore buyers due to the favourable exchange rate," said Peden.

"Of course the fact that Melbourne CBD land is relatively cheap when compared to the major cities of China, Malaysia and Singapore, the low interest rate environment locally, the potential to sell a high volume of end units off-shore, and Australia’s `safe-haven’ investment status also figure prominently."

According to Baxter, the site is well served by local amenity.

"This is an exceptional central CBD location close to Melbourne Central Shopping Centre, RMIT University, the Legal Precinct, and Melbourne Central/Flagstaff train stations.

"The sale is another demonstration of the demand for CBD freehold property and the obvious capital growth potential of properties within Melbourne’s vibrant and rapidly expanding CBD."