The first half of 2012 has seen increased sales activity in Melbourne’s suburban office market, according to CBRE.
A total of seven sales valued at more than $5 million have been finalised over the first six months of 2012 in areas including Mulgrave, Hawthorn and Brunswick.
“This is around the same number of sales that transacted in the 2011 calendar year, which is a significant improvement,” CBRE metropolitan investment properties director, Justin Clarkson says.
“Syndicates have purchased around 25 percent of the suburban office buildings transacted in the early part of 2012 and 2011 … buyers include Vantage, Forza Capital and Property Bank from Perth.”
Clarkson says buyers are showing a clear preference for quality assets with low risk profiles.
According to CBRE, developers and funds have been the most active vendors over the past year.
“We anticipate an increase in receiver activity in the office sector going forward. We have already seen an increase in the involvement of receivers and banks for non-income producing assets incorporating development sites, and we expect the same pressure will be brought to bear in the office sector in the coming 12 months,” Clarkson says.
According to CBRE, the vacancy rate for the south-eastern Melbourne office market is 6.8 percent. Prime rents are $296 per sqm for the inner-eastern market, which represents an increase of 15 percent over the past two years.