Melbourne has outshone all other Australian cities, including Sydney, named the best prospect in the Asia Pacific region for both investment and development opportunities, according to a recent report.  

The information was revealed as part of the Urban Land Insitute and PwC’s latest “Emerging Trends in Real Estate Asia Pacific 2019” report which evaluates and offers insight on real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan areas across 22 cities in the Asia Pacific region.
  
Commercial rental growth across both Melbourne and Sydney was found to be “phenomenal” so far this year, with Melbourne outperforming Sydney due to its concentrated office supply pipeline.
 
The report also revealed that whilst yields are slightly down across the board in both states, they remain extremely high in terms of international standards at nearly 4.5% for prime office and retail, and 5.5% for quality industrial space.
 
Despite office vacancies being reported as lower than previous years in both cities at around 4%, prices in Melbourne are more reasonable even with the lowering vacancy rates, meaning strong opportunities remain for investors.
 
With more buyers than sellers in CBD locations, many commercial property investors are now willing to move out from city centres, searching for prime commercial property sites in Melbourne’s outer suburbs. We expect this will create additional opportunities for those looking to sell properties in up-and-coming commercial real estate suburbs such as Tullamarine, Epping, Moorabbin, Cheltenham, Noble Park, Ringwood and others.
 
For more information on investment opportunities or to discuss buying or selling commercial properties within Victoria, speak with one of our consultants on 03 9654 2311.