Record yield and strong bidding highlight investor confidence in Perth’s city fringe market
Colliers, in conjunction with Axia Corporate Property, has successfully sold 223 James Street, Northbridge for $8 million under the hammer, setting a new benchmark for the precinct.
The campaign generated multiple bids and concluded with an exceptionally tight 3.63% yield, highlighting the strength of demand for well-located investment opportunities with future development upside.
The property features a two-level office building on a 1,440sqm landholding, leased to the North Metropolitan Health Service with an annual rental income of $291,704. The combination of secure government-backed income and strategic redevelopment potential made the asset highly attractive to a wide range of investors and developers.
The sales campaign was jointly managed by Colliers experts Shane Isaacs | Manager, Investment Services and Aidan Austen | Executive, Investment Services, in conjunction with Franco Gangemi and Wayne Mitsikas from Axia Corporate Property.
Mr Isaacs said the result reflected the strong appetite for well-located office investments close to major urban renewal precincts
“The sale represented a rare opportunity to acquire a premium leased freehold office building with future redevelopment potential. Northbridge continues to gain momentum with buyers attracted by its strong amenity, proximity to the Perth CBD, the Perth City Link redevelopment, and the soon-to-open ECU Perth campus.”
Mr Austen added that the competitive bidding on auction day demonstrated the depth of capital seeking secure income with clear value‑creation pathways. “This transaction underscores the volume of capital targeting well-located assets offering secure income and future uplift. The combination of a government-backed covenant, strong underlying land fundamentals and genuine near-term redevelopment optionality created aggressive pricing and a record-tight yield.”
Mr Gangemi said the property’s fundamentals resonated strongly across the purchaser pool.
“The property ticked all the key investment boxes, a sought-after strategic location and a large 1,440sqm landholding with generous redevelopment guidelines. These attributes generated strong interest from developers and investors keen to capitalise on this rare opportunity.”
Related Articles
