The start of Q2 2023 has continued the trend of commercial real estate deals transacting to Asian backed capital.

Stonebridge Asia Practice Partner, Chao Zhang, commented on this saying “Over the last 6 weeks our Asia Practice has continued to receive bids and transact properties to Asian backed capital across all of our listings including development sites, passive investments, strip retail shops and larger $50m+ assets as well.”

Stonebridge just concluded a deal in the Box Hill Activity Centre at 69 Carrington Road, Box Hill, highlighting this trend, in a sale handled by Mr Zhang, and Julian White. The property was sold to a Chinese developer for $12,780,000. The sale price reflected a land rate of just under $11,500/sqm for Commercial 1 Zone land in the Box Hill Activity Centre.

Chao Zhang added “The increase in demand from Chinese investors and developers is noticeable ever since China lifted its COVID restrictions. For comparison, in just December last year a similar sized parcel of land sold for only circa $7,000/sqm at 25-29 Ellingworth Parade, Box Hill, which had the same zoning and similar development height potential.”

Stonebridge National Partner, Julian White, commented on the deal saying “The overall interest in the property was very strong, which shows a clear trend from the market to acquire quality assets. We received over 100 enquiries and multiple offers on contract at the conclusion of the second round EOI process, which demonstrates good depth from the market as well.”

The Stonebridge Asia Practice expects the trend of Asian capital investment into Australia to continue, at least in the short-medium term, as investors across the world are placing a stronger emphasis on capital preservation over to higher risk returns. Major capital cities like Melbourne and Sydney are well placed to capture this interest, and Australia overall seen by many high net worth’s as one of the top 5 destinations to invest across the world.

The Year of the Rabbit forecasts a spike in Offshore Asian investment in Australia says Stonebridge 

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