Local investors are competing strongly with offshore purchasers for strata office and retail shops in the Melbourne CBD, according to Colliers International.
Colliers International’s Melbourne City Sales team said they expect to see even more appetite from ‘mum-and-dad’ private investors in both domestic and offshore interests in the months ahead as continued cuts to interest rates encourage activity.
Oliver Hay, Colliers International Senior Executive – Melbourne City Sales, said the current appetite for strata investment assets in the CBD, both offices and small retail investments, would continue to grow amidst record low interest rates and strong competition.
“Of the last seven strata deals facilitated by Colliers in the last two weeks, half of these assets have been sold to local purchasers and half to those from offshore or with offshore interests,” Mr Hay said.
“Local private investors are competing strongly with offshore buyers and, with a further cut to interest rates in recent weeks, we are seeing an ongoing heightening in demand for strata retail properties as well as office.
“This insatiable appetite for strata assets is driving a spate of sales and new listings as local and offshore buyers compete.”
Recent deals have included: