Malaysians join investor push in Melbourne’s outlying office market

Krongold Constructions – a residential builder dating back to 1957 – has its offices in the East Melbourne building, which has been fully leased.

Marlion House sales agents JLL and Gross Waddell said East Melbourne, which is just north of the Melbourne Cricket Ground sports precinct, remained one of the most tightly held office markets and had one lowest vacancy rates – averaging 2.2 per cent over the past 10 years, according to the Property Council of Australia.

“Just as Notting Hill is to London, or the Upper East Side is to New York, East Melbourne has established itself as the most prestigious and tightly held enclave on the edge of Melbourne’s CBD,” said Josh, Head of Capital Markets at JLL. Rutman.

Last month, Elizabeth Ring, the ex-wife of Swisse Vitamins multi-millionaire Stephen Ring, bought 1 Clarendon Street, a 115-year-old red-brick building in East Melbourne, formerly owned by Victoria’s Police Association, for more of $22 million in a transaction brokered by Colliers.

“The campaign revealed a wide range of buyers ranging from investors, developers and homeowners, demonstrating the quality and versatility of this asset,” said Oliver Hay, co-salesman of Colliers.

Additionally, on the outskirts of the city of Melbourne, a vacant art deco office building in West Melbourne owned by a Brunei businessman has sold for around $22 million.

Located directly across from Flagstaff Gardens, the building at 363 King Street on a 1,112 sqm block sold with a permit for a 13-storey office building. Colliers also brokered this deal.

Jose C. Birney