The Australian office market continues to see record prices being set from sales to overseas investors. In the past week, TH Real Estate announced it had sold 20 Hunter St, Sydney NSW, an A Grade office tower on a record yield of less than 4%. The property is located in the heart of the Sydney CBD with 9,895 sqm of NLA and is the lowest CBD office yield for the year following the April sale of the ASX building at 20 Bridge St, Sydney NSW which sold for $340M on a 4.0% – 4.5% yield. The purchaser was Hong Kong based property firm K Wah Group, and the purchase represents K Wah Group’s first acquisition in the Australian office market.
Information has been released about plans to redevelop Sydney’s Central Station. The proposal is expected to cost more than $3B and will include a five-star hotel, a number of high-rise towers and the relocation of the existing light-rail stop. Whilst the plans are at a preliminary stage at the moment, Core Property expects such a project would significantly transform the precinct and generate renewed interest for properties in the area.