Increased Chinese investor activity in Melbourne's central business district
A number of Chinese property investors have been buying up large sections of Melbourne's ...
A number of Chinese property investors have been buying up large sections of Melbourne's central business district over the last week, with more than $110 million being spent on property, according to Savills global real estate.
One of the properties purchased by a private developer was a six level heritage office building formerly known as Equity Chambers, which sits on an 1,162 square metre site and holds "significant development potential".
This follows the sale of three other sites in the city, with deals ranging from $6 million to $48.5 million. These increases in international property investment have raised the number of Melbourne CBD commercial real estate being bought by foreign investors to 25 per cent.
Savills City Sales and Investments Director Clinton Baxter said that this uptake of deals continues an "overwhelming trend" of international buyers looking for sites in the CBD to prepare for immediate development.
"There are many reasons behind these recent sales; chief among them being Melbourne'’s nomination as the world's most liveable city for the third year in a row, access to our highly regarded education sector, and the low Australian dollar which is providing exceptional value for off-shore buyers due to the favourable exchange rate," said Mr Baxter in a September 10 statement.
Mr Baxter also said that the relative affordability of Melbourne property, compared to China, Malaysia and Singapore, was an added incentive. When coupled with the low interest rates and the potential for a high volume of sales, these factors make investment property in Australia a highly lucrative prospect.
"This is an exceptional central CBD location within Melbourne's financial precinct. Just one block away from the Bourke Street Mall, it benefits from a huge level of local amenity," said Mr Baxter.
These increases in investment by overseas buyers could be a catalyst for inspiring local buyers to enter the real estate game, and being purchasing investment property of their own.
The latest Australian Bureau of Statistics data has revealed that lending commitments for existing property in Victoria increased during July - offering an option for those investigating purchasing property.
Lending for existing properties increased in July by 25.5 per cent over the same time last year, and 13.5 per cent over the same quarter last year, highlighting the growing confidence in Victoria's housing market and indicating a chance for investment in the capital's central business district.