Sales of Melbourne commercial real estate have nearly doubled over the year to June, according to agents.
During the last financial year, more than $6.6 billion in retail, industrial, and office transactions were finalized, compared with $3.77 billion the previous year, according to figures released by Knight Frank.
Property professional James Templeton stated recently that foreign buyers were the “key investors”and that they had poured $2.15 billion into the market.
Syndicates added $2 billion, and REITs were responsible for bringing $1.4 billion into the Australian market.
Melbourne’s CBD office market reached a record-breaking $2.22 billion in sales, exceeding the previous financial year’s level of $1.76 billion.
Total sales figures for industrial property tripled to $923 million in the year ended June.
Sales in the retail sector doubled to $2 million, according to Knight Frank.
The biggest buyers of industrial assets were unlisted funds and syndicates; they spent over $457 million. REITs preferred to invest in retail, and did so to the tune of over $779 million.
Private investor spending was down over the previous year, as a result of higher competition from unlisted funds and offshore groups, according to Mr. Templeton.
