Melbourne commercial property lures in investors
Melbourne has become the hot spot for commercial property investment, with the Victorian capital ...
Melbourne has become the hot spot for commercial property investment, with the Victorian capital trumping Sydney in the sale stakes.
According to the Property Observer, in the first six months of this year Melbourne recorded sales of $629.5 million worth of commercial office property, surpassing Sydney which only recorded $478.6 million of sales in the same period.
Some experts have attributed Melbourne's significantly cheaper office market and increased vacancy rates compared to Sydney's tightly locked commercial real estate as the reason behind the figures.
Recent figures from the Property Council of Australia revealed the Melbourne CBD office vacancy rate rose from 5.2 per cent to 5.6 per cent in the period between January and July.
Comparatively, Sydney recorded a fall in vacancy rates from 9.7 per cent to 8.2 per cent in the same time period.
And vacancy rates in the New South Wales capital are tipped to fall even further, dipping to 7.9 per cent by January next year.
The largest entire asset purchase in Melbourne over the first six months of this year was the $181 million sale of 150 Collins Street. In comparison Sydney's priciest asset sale was the Macquarie Bank's purchase of 48 Martin Place for $131 million.