Foreign investors the majority of Melbourne CBD office investors: Savills
Foreign investors were the most active purchases in the Melbourne CBD market for the year to March 2016, accounting for 66 percent of total sales according to Savills.
For the year to March 2016, 34 commercial office sales were made for the value of $2.9 billion, up from total sales at $2.11 billion in the year prior.
According to Savills market yields in the Melbourne CBD as at March 2016 are estimated to range between 5.75 percent and 6.75 percent for A grade buildings, and between 7.00 percent and 7.75 percent for secondary buildings. Yield compression has been evident over the last twelve months, with yields for A grade assets having firmed by 50 basis points on average, whilst secondary yields tightening by 75 basis points.
Capital values in the Melbourne CBD as at March 2016 are estimated to range from $6,600 to $10,000 per square metre for A grade buildings, and between $4,100 and $5,500 per square metre for secondary grade buildings. Average capital values for A grade properties have delivered an increase of 16.1 percent over the year.
