Local and offshore investors who have been starved of opportunity in the Golden Triangle are eyeing emerging CBD precincts

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Institutional investors are being squeezed out of the Golden Triangle and are eyeing the emerging precincts in the CBD.

Knight Frank partner and head of institutional investments Justin Bond there was limited office tower availability in the tightly held Golden Triangle precinct.

However, he said with billions of dollars infrastructure being built in the other end of the CBD investors had refocused.

“The sale of 61 Mary St to Charter Hall for $275 million at the end of last year highlighted a significant change to the investor mindset for Brisbane,” Mr Bond said.

“The development of the Queen’s Wharf precinct and the recent announcement of the Cross River Rail has prompted investors to secure land parcels and office investments surrounding Albert, Mary and George streets.

“This precinct, once known as the old government precinct, was previously overlooked.”

“This precinct, once known as the old government precinct, was previously overlooked.”

Mr Bond said investors were also starting to focus on the North Quarter.

“We expect the North Quarter to transform significantly over the coming years with the development of Brisbane Live and the Cross River Rail, as well as the redevelopment of the Brisbane Transit Centre,” he said.

“Further, we will see the evolution of the Green Spine, connecting the North Quarter precinct to the Botanic Gardens, promoting an accessible and vibrant new precinct within the Brisbane CBD.”

According to the latest Knight Frank Brisbane CBD Office Market Overview there was $2.41 billion in transactions in the CBD last year.

The only other time investment activity has been higher than $2 billion was in 2013, when $2.46 billion in transactions was recorded.

Mr Bond said the purchaser composition in each year was completely different. with last year dominated by offshore buyers, which was the opposite to 2013.

“Last year offshore buyers accounted for 73 per cent of total transaction activity, equating to an investment of $1.76 billion, which is clearly the highest on record and reflective of the increasing acceptance of Brisbane as a mature investment destination,” he said.

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