This article is from the Australian Property Journal archive
THE Melbourne property market is experiencing a different kind of boom thanks to the tertiary education system, with former students and their parents among the most active buyer group, according to Savills.
Savills head of city sales & investments Clinton Baxter said Asian students who previously studied or currently studying in Melbourne have been attracted to invest in what they know, first hand, to be a very liveable and popular city.
“Over the past 12 months more than 40% of Savills sales of Melbourne CBD properties have been to offshore buyers and many other sales have been hotly contested by numerous off shore groups.
“The number of these buyers who have studied in Melbourne or whose children have studied in Melbourne has been quite significant,” he added.
Clinton pointed out the recent education links to sales:
- Malaysian developer Mammoth Empire which purchased 410 Elizabeth St for $18 million for the MY80 apartment project, and more recently purchased 398 Elizabeth St for around $15 million. Mammoth’s CEO studied in Melbourne in the early 1990’s.
- The buyer of 51 Queen St ($16.38 million) studied Engineering at Monash University in the 1970s before returning home to Malaysia to live.
- The Malaysian buyer of 1 Queen St ($11 million) studied at Melbourne University in the 1990s before returning home.
- 333 Exhibition St which sold for $22 million and 472 Bourke St which sold for $12 million were also purchased by Asian-based buyers who had studied locally.
“Often there is a very apparent link whereby offshore buyers previously studied in Melbourne, living here for several years prior to returning to their home country. The link extends decades into the past with offshore students from as far back as the 1970s returning to invest in recent times.
“Alternatively, other offshore buyers have been purchasing in Melbourne as a means to secure a secondary or tertiary education for their children at our leading schools or universities.
“Either way, the education link creates a knowledge of the local property market, one with sound fundamentals, and this has given Melbourne a definite advantage in attracting investment dollars,” he continued.
Clinton observed that other offshore buyers are emerging, particularly from China and Indonesia, purchasing Melbourne commercial properties in tandem with sending their children to local private schools and universities.
“While economic problems continue to beset the European and US economies we expect the ongoing surge in Asian investment here to continue with Melbourne’s investment market remaining a popular choice especially among those with a strong personal attachment to the city,” he concluded.
Property Review
