In a sign Brisbane is booming in the lead up to the 2032 Olympics, 33 Herschel Street in the CBD has transacted for $13.2 million, reflecting impressive capital growth of 43 per cent over three years.

In a deal transacted by Colliers agents Tony Wang and Troy Linnane and Cushman and Wakefield agents Andrew Gard and Michael Gard, 33 Herschel Street, located in the heart of the CBD's North Quarter is one of only three sub-$20 million freehold commercial office buildings transacted in the Brisbane CBD in the past year.

Transacted on behalf of local Asian developer Capricorn Asset Management Pty Ltd to a local Asia-Pacific Education Operator the sale reflected a strong initial passing yield of 4.47 per cent.

Colliers Queensland Asia Markets Director Tony Wang said the unique 100 per cent occupied three-level, 911sqm freehold site, offered a rare opportunity for investors.

“Even though there have been several unsuccessful commercial asset marketing campaigns with the lowest levels of office transactions in Brisbane since the onset of the COVID-19 pandemic in 2020, there remains a strong influx of Asia-Pacific capital into Brisbane's commercial real estate market including investors, owner-occupiers, and developers,” Tony Wang said.

“Asian investment into the Australian commercial property market has remained relatively strong, with almost $3.15 billion worth of commercial property transacted in 2023.

“We are witnessing strong buyer interest for assets sub $30 million with Australia continuing to be highly sought after for Asian investors given its stable fundamentals and globally comparative resilience and value, especially when we look at the European and US markets.

“The transaction history for this property is noteworthy, as Colliers introduced a local Asian developer who initially purchased it in 2020 and subsequently, it was resold to an Asia-Pacific education operator,” Tony Wang added.

Colliers Queensland Director Troy Linnane said the property’s strategic location places it right in the heart of the CBD's 'North Quarter’ precinct, an area that is witnessing substantial government infrastructure and commercial development, establishing itself as one of Brisbane's most vibrant and sought-after locations.

“The site is a rare find in the Brisbane CBD, with the existing improvements offering 1,749 sqm of net lettable area and zoned PC1 (Principal Centre) with development potential up to a height of 274 metres,” Troy Linnane said.

“Currently, the property is fully occupied by contractors involved in the delivery of cross river rail development and has been purchased by a local Asia-Pacific education operator, who intends to take possession after the current lease expiry.

“For some time, industry experts have been forecasting that Brisbane would be the best-performing capital city market over the coming three years, this deal reflects this sentiment,” Troy Linnane added.

Over the next twenty years, the Brisbane 2032 Olympic and Paralympic Games are forecast to generate economic and social benefits of $8.1 billion for Queensland and $17.6 billion for Australia.

The building, was originally constructed around 1975, and underwent a comprehensive refurbishment in 2013.