Melbourne, January 30 2019 – A ground floor gym in the Melbourne CBD has sold for $5.05 million – more than $1 million above its reserve price – following a competitive auction between six bidders.
The 369sqm investment at Shop 1, 199 William Street fielded a total of 47 bids before it sold under the hammer to an international investor at a 4.72% yield. The final sale price reflected a strong building rate of $13,686 per sqm.
CBRE’s Melbourne City Sales team, comprising Max Ruttner, Alex Brierley and Leon Ma, handled the marketing campaign on behalf of Melbourne-based developer Hengyi.
Mr Ruttner noted the result highlighted the pent-up demand from local and international investors wanting to secure CBD leased investments.
“It was clear the registered parties were keen to capitalise on the anticipated growth for the western end of the CBD. The auction price quickly escalated from $3 million to $3.7 million within the first few bids and eventually sold to the Chinese investor for $1.15 million over our vendor’s reserve,” Mr Ruttner said.