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An Asian investor has paid more than $1.8 million for two Sydney CBD strata office suites at asking prices on the same day through Ray White Commercial.
A tenanted 175 sqm office at 3/70 Pitt Street, Sydney, was sold for $1,050,000 by Ray White Commercial’s Anthony Harris for a net yield of approximately seven per cent. The suite last traded in February, 2013, for $695,000
Mr Harris also sold another tenanted 98 sqm suite at 6/23 Hunter St, Sydney, to the same buyer for $760,000 and a net yield of approximately six per cent. The suite previously was sold for $735,000 in November, 2007.
"The purchaser was seeking to buy up to 10 strata office suites with the main requirement being under 200 sqm currently leased, or able to be leased quickly at net yields of six per cent or better,” Mr Harris said.
"We had two listings which met these criteria and both were secured at the asking price the same day.
“We are seeing strong overseas demand from Asian investors who are seeing value in our low currency and good rental yields, and strong leasing demand below 200 sqm.
“Unlike residential property, foreign investors have no restrictions on purchasing second hand commercial office space at this price point and this is helping the commercial strata market recover some capital lost in recent years.”
