Brisbane CBD commercial tower sells for $13.2M, showing 43% growth in 3 years

In a sign of Brisbane’s booming property market ahead of the 2032 Olympics, 33 Herschel Street in the CBD has sold for $13.2 million, reflecting a remarkable 43 per cent capital growth over the past three years.

The deal, transacted by Colliers agents Tony Wang and Troy Linnane and Cushman and Wakefield agents Andrew Gard and Michael Gard, saw the unique 100 per cent occupied three-level, 911sqm freehold site change hands from local Asian developer Capricorn Asset Management Pty Ltd to a local Asia-Pacific education operator, with a strong initial passing yield of 4.47 per cent.

Tony Wang, Colliers Queensland Asia Markets Director, highlighted the strong influx of Asia-Pacific capital into Brisbane’s commercial real estate market, despite several unsuccessful marketing campaigns and low levels of office transactions since the onset of the COVID-19 pandemic in 2020.

“Asian investment into the Australian commercial property market has remained relatively strong, with almost $3.15 billion worth of commercial property transacted in 2023,” Mr Wang said. “We are witnessing strong buyer interest for assets sub $30 million, with Australia continuing to be highly sought after for Asian investors given its stable fundamentals and globally comparative resilience and value.”

Troy Linnane, Colliers Queensland Director, noted the property’s strategic location in the heart of the CBD’s ‘North Quarter’ precinct, an area witnessing substantial government infrastructure and commercial development. “The site is a rare find in the Brisbane CBD, with the existing improvements offering 1,749 sqm of net lettable area and zoned PC1 (Principal Centre) with development potential up to a height of 274 metres,” he said.

Currently fully occupied by contractors involved in the delivery of the Cross River Rail development, the property has been purchased by a local Asia-Pacific education operator who intends to take possession after the current lease expiry.

The Brisbane 2032 Olympic and Paralympic Games are forecast to generate economic and social benefits of $8.1 billion for Queensland and $17.6 billion for Australia over the next two decades.