GormanKelly has just sold a high-profile suburban office building on Doncaster Hill for over $15,000,000 following an off-market campaign.
The property was sold utilising only our database. No board, no advertising, no internet, no marketing costs. 11 competitive expressions of interest were received.
An undisclosed buyer acquired the 651 Doncaster Road building, which has been controlled by the same private family for close to three decades.
Doncaster Hill is a high density residential and principal activity centre anchored by Westfield Doncaster, which directly adjoins the site sold. The number of office buildings in the area has dwindled considerably in recent years, following the conversion of older offices to residential projects. The limited supply of office accommodation in the area coupled with healthy rental growth in Melbourne’s inner eastern suburbs over the past 12-18 months underpinned strong buyer interest in the Doncaster Road campaign.
The transaction follows heightened sales activity in Melbourne’s suburban office market in the second half of 2019. This emphasises the confidence buyers have in Melbourne’s metropolitan office market, particularly assets which have a high underlying land value and those which can be repositioned to better accommodate tenants given emerging trends for modern day office needs.
The sale price equates to a building rate of around $7,000/sqm, reflecting a pricing level more commonly seen in the city fringe market.
We expect office investors to have a greater focus on Melbourne’s metropolitan markets in 2020 given the limited supply and intense competition for assets in the CBD, St Kilda Road and city fringe markets.
Contact us to discuss how we can sell your property in 2020.
Written by Aldo Galante
For over 30 years, Aldo has been at the forefront of Australia’s fast-evolving property industry. He served as President of the prestigious Australian Property Institute (Vic), providing determinations on rent-reviews and valuations