The JLL Melbourne CBD Sales Team has sold an East-End Melbourne CBD freehold at 27 Windsor Place only days after the close of the Expressions of Interest for $5,265,000.

The sale reflects a building rate of $18,345/sqm being the strongest pure office sale for the year as buyers compete strongly to secure prime Melbourne CBD assets amongst a shortage of available opportunities to purchase.

JLL’s Nick Peden, Josh Rutman and MingXuan Li handled the sale on behalf of the local owner who had owned the property for 11 years. During the period of their ownership, the property has almost doubled in value, demonstrating the capital growth potential of Melbourne’s CBD being stronger than anywhere in Australia.

The three-level office building of 287sqm is set on a site of 123sqm and was sold with vacant possession. The building represents one of only two buildings with a Windsor Place address.

The key buyer groups were local and interstate investors and owner occupiers, with the eventual purchaser being a local owner occupier who intends moving into the building.

Mr Peden said, “The scarcity factor of limited purchase opportunities within the Melbourne CBD is driving strong demand from the market and buyer confidence is building for Melbourne CBD assets.”

With 2022 almost coming to a close, the JLL Melbourne CBD Sales Team has analysed market trends throughout the Melbourne CBD market in 2022 and found significant price growth in 2022.

It found only 16 Melbourne CBD freehold properties ($5m - $50 million) have sold so far in 2022, representing the scarcity of opportunities to purchase.

• The average building value rate for office buildings is $12,311/sqm and for retail properties it is $18,697/sqm.

• The average land value rate across the board is $51,223/sqm.

Despite the increase in interest rates and inflated CBD office vacancy, the Melbourne CBD trends we have witnessed in the second half of 2022 is a 33.08% increase in building value rates and a 28.76% increase in land value rates, showing that the depth of interest is pushing prices up throughout the CBD.

JLL are witnessing stronger demand for CBD assets now than earlier in the year and this demand is sure to continue, with many buyer requirements being received by JLL and the desire to secure Melbourne CBD real estate heating up.

To request a sales analysis please contact the selling agents JLL’s Nick Peden, Josh Rutman and MingXuan Li via the below contact details. 

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