Developers pounced on close to $4 billion in inner city residential sites in Sydney, Brisbane and Melbourne in the 12 months to April 2015, with offshore buyers leading the charge according to a new CBRE report.
CBRE’s ViewPoint analyses sales within a five kilometre radius of the CBD’s of Sydney, Melbourne and Brisbane. It highlights a dramatic rise in sales activity since 2012, driven by rapid growth in investor demand for inner city apartments.
In Sydney, the combined value of inner city site sales exceeded $2.5 billion in the 12 months to April 2015 – up 880% by value on the corresponding period in 2012. Brisbane sales totalled $499 million, an increase of 635%, while inner city Melbourne sales totalled $1.0 billion, reflecting a 312% rise.
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CBRE Senior Research Analyst Jacob Fong said, “The increase in turnover across these markets is a clear indication of the increasingly strong demand for residential development sites, largely being driven by foreign investment. The buyer demand has transformed the inner city real estate markets in all three cities, where the highest and best use for sites has traditionally been commercial.”