Foreign buyers splash $1bn in Melbourne’s east
Foreign investors have splurged more than $1 billion on developments across Melbourne’s east during the last five years, according to new research.
Recent analysis by CBRE shows overseas buyers accounted for more than half of the $2.34 billion in commercial property sales since 2014.
The bulk of the acquisitions were below $30 million, but several sales were for big-ticket projects well above $100 million.
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CBRE director investments Mark Wizel says the overall figure leaves no doubt interest in the Melbourne market is strong abroad.
“The fact that so many of these transactions have involved off-shore investors and particularly Asian investors is no accident,” he says.
“The populations of centres like Box Hill and Glen Waverley have been largely swelled by new Asian residents, and investors, in some cases linked by family and or finance to those residents, feel very comfortable in buying into such areas.
Century City Walk in the Melbourne suburb of Glen Waverley.
“What is also remarkable is that this has happened at the same time as easily the most prominent cohort here – Chinese investors – has been significantly constrained by the policies of the Chinese Government on their ability to invest abroad.”
The major acquisitions include the Burwood One Shopping Centre, which was snapped up for $181.5 million by a Hong Kong investor.
Another property at 353-383 Burwood Hwy in Forest Hill, was purchased at an undisclosed price by a Chinese buyer.
Other notable sales to off-shore investors include 12 Lakeside Drive, Burwood East, which fetched $25.5 million. Maroondah Shopping Centre sold for $18.8 million, 941-947 Whitehorse Rd in Box Hill was snapped up for $13.3 million and 60-62 Maroondah Highway in leafy Ringwood was acquired for $28.3 million.
Wizel says the trend is likely to continue with investors vying for properties currently on the market.
This includes interest in iProsperity Group’s Century City Walk Shopping Centre and the adjoining 200-room Novotel hotel on Springvale Rd in Glen Waverley.
Located on a 10,308sqm site, Century City Walk is being sold with a net passing income of $2.89 million per annum.
It has a raft of high profile tenants including Village Cinemas, Strike Bowling, and Pancake Parlour, while the Accor-operated, 200-room Novotel has a current annual income of $5.1 million.
