Melbourne, 6 December 2013-The low interest rate environment is underpinning an upswing in transaction activity in Melbourne’s office market, with a prominent Collins Street building experiencing a recent tranche of sales.
In the past five weeks, five sales have been recorded within the Singapore Airline House at 420 Collins Street, the latest being the off market sale of a top level, penthouse office negotiated by the CBRE City Sales team.
A local IT/telecommunications operator acquired the 393sqm tenth-floor property with vacant possession for $1.9 million – reflecting a record rate per square metre of $4,900.
CBRE’s Tom Tuxworth, who negotiated the sale in conjunction with fellow agents Ed Wright and Chris Pharr, said location was a key factor behind the sales.
“Buyers have been attracted to this building’s high profile location in the heart of the CBD, between William and Queen streets,” Mr Tuxworth said, adding that the low cost of debt was helping to buoy buyer confidence.
“With interest rates at a current 50-year low, owner occupiers are doing the numbers on signing a new lease and realising just how affordable it is to purchase.”
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