A China-based family has paid $5.4 million on a very low 4.29% yield for a CBD building in Melbourne, just 12 hours after it was put on the market.
The 355-357 Exhibition Street property comprises a three level, 880sqm building with ground floor retail, and four upper level apartments.
Selling agent, Savills Head of City Sales & Investments Clinton Baxter, who negotiated the deal with colleague Nick Peden, said the property was snapped up at the very high land rate of $18,500 a square metre, within 12 hours of hitting the market.
“This is yet another example of the rush to buy Melbourne property at the moment, rush being the definitive term. The phone literally ran hot resulting in numerous potential purchasers making inspections within hours of hitting the market,” Mr Baxter said.
“This reflects the strong demand for well-located smaller freehold properties within the CBD, properties which are increasingly shrinking in number as major development takes over the central city area.”
Mr Baxter said the property was sold fully-leased to a mix of retail and residential tenants, the majority of whom were on short-term leases, at approximately $232,000 per annum.
Mr Peden said the vendor, who had held the property for more than 30 years, had been understandably delighted with the quick result and the very good price.
“The vendor’s decision to sell could not have been at a more opportune time given the enormous current demand for Melbourne CBD property and the remarkable prices that have been paid over recent weeks," said Mr Peden.