Values are expected to soar higher and investment yields to tighten further on the east coast amid continued strong demand from both local and offshore investors and developers for a limited pool of quality assets.
The Christmas sales were led by AMP selling its headquarters overlooking Circular Quay in Sydney to two unlisted AMP property funds for between $430 million and $460 million.
Also in Sydney, Eureka Funds Management sold 55 Clarence Street, a B-grade Sydney office tower to Boston-based AEW Capital Management for about $169 million while on Ann Street in Brisbane, Mirvac snapped up a medium-rise Brisbane office building for $65.1 million from Singapore's Wee Hur Holdings with plans for a major office development.
In Melbourne, Singapore-listed KLW Holdings, chaired by Brunei's Prince Abdul Qawi, sold a seven-storey Victoria University building on Flinders Lane for $34.2 million on a very tight 3.97 per cent yield to the Poulakis family, the founders of luxury retail chain Harrolds.
There was plenty of activity in the land market with Stockland acquiring a 114-hectare southern portion of the Baillieu's Minta Farm in Melbourne's south-east for between $150 million and $200 million with plans for a 1700-lot housing estate. In Sydney's hot land market, ASX-listed developer Tian An Australia acquired a 1.26-hectare site in the inner west for $35 million. In the hotel sector, French giant Accor snapped up a portfolio of 15 Ibis and Ibis Budget from the Abu Dhabi Investment Authority for $200 million in a sign of strong confidence in the country's tourism.
The pub sector's record run continued right up until the final days of the year with the Australian Pub Fund run by John Singleton, Geoff Dixon and Mark Carnegie selling three Sydney pubs off-market for a combined $47 million and Sam Arnaout's Iris Capital offloading the landmark Clovelly Hotel to Matt Moran's Solotel hospitality empire for a price thought to be in excess of $30 million.