NEW MELBOURNE CBD HOT SPOT AS PROPERTY SALES REACH $17 MILLION

NEW MELBOURNE CBD HOT SPOT AS PROPERTY SALES REACH $17 MILLION
LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following the sale of two key commercial properties on the strip.

Number 563-567 Little Lonsdale Street attracted $6.63 million under the hammer, while down the road 361-365 Little Lonsdale Street changed hands off-market for $11.1 million.

Colliers International's David Sia, Oliver Hay and Daniel Wolman orchestrated the sale of 361-365, brokering the deal on behalf of a Hong Kong vendor to a private Malaysian investor at a yield of 1.6 per cent.

Sia says prime market conditions coupled with the buildings' potential for development encouraged the vendors to cash in.

"The [361-365] sale was indicative of long-term holders seizing the premium values achievable in the current commercial climate," says Sia.

"Both 563-567 and 361-365 Little Lonsdale are zoned Capital City 1 and have substantial development upside.

"The underlying potential of the land ensured strong interest, as buyers continue to seek freestanding CBD assets with future value-add opportunities."

Off the back of these sales, Colliers also listed 102 Little Lonsdale Street earlier this month.

Oliver Hay says the property is an Italian-inspired legacy residential gem with boutique office potential.

"This iconic residence is a premium chance to secure a truly one-of-a-kind CBD asset," says Hay.

According to Hay, even though Melbourne's CBD property market in general remains notoriously hard to crack, it has done little to quell buyer interest.

"We're already seeing huge interest from investors and owner-occupiers struggling to break into the freestanding market due to the significant residential conversion in the CBD," he says.

Business News Australia

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