There is still apparent confidence in Melbourne’s commercial market even as the residential sector is seeing the effects of a protracted downturn. Despite restrictions on the outflow of capital from China, investors are still targeting established commercial holdings in central Melbourne. Some recent, high end examples have been Burwood One shopping centre selling for $181m to a Kowloon based investor; an office block on St Kilda Road selling for $163m to a mainland Chinese buyer and a tower at 277 William Street to a Hong Kong group for $93.8m.
CBRE’s National Director of Investments, Mark Wizel, stated that “investment declined significantly over the last 12 Months” (from China) but that it now seems clear that “Money has begun to flow again”. Mr Wizel also believes that the reduction in clearance rates in the residential property sector has had a positive effect on Chinese confidence in commercial property opportunities.