Recent rate cuts spark renewed demand for premium strata office space, with Cremorne House leading the way.
Investor sentiment has significantly strengthened following the Reserve Bank of Australia’s recent decision to cut the cash rate, sparking renewed momentum across the commercial property sector, particularly in Melbourne’s burgeoning premium strata office market.
This renewed energy is reflected in two recent transactions at Wilmac’s Cremorne House, where Colliers agents Ben Baines and Matt Knox secured two strata office sales within one month, achieving impressive building rates close to $13,000 per square metre.
Cremorne House, ideally located in the heart of Cremorne, is well-connected via East Richmond Station and just a short walk from both Swan Street and Church Street retail precincts. Its prime location, modern design, and exclusive strata offering have positioned it as one of Melbourne’s most desirable business addresses.
The two tenanted investment sales achieved over the past month transacted at a 6.2% capitalisation rate. Notably, Suite 1.03 was sold by Matt Knox of Colliers for $1,230,000 to an interstate investor looking to capitalise on the strength of the Cremorne office market and the quality of the building.
Additionally to the above, Colliers also went unconditional on Suite 2.02, which sold for $1,215,000. The office was a 95sqm suite and the building rate was $12,789/m2.
“Such strong rental growth, combined with recent rate cuts and a forecast of up to three additional reductions by February 2026, have seen savvy investors flocking to brand-new office assets that also offer depreciation benefits,” said Matt Knox, Senior Executive, Melbourne Metro Sales | Investment Services at Colliers.
Mr Knox added, “Since January this year, 100% of new strata office stock in the fringe market has been sold to local (43%) and interstate (57%) investors. We’re seeing a marked shift towards more stable, lower-cost debt.”
The strong sales performance underscores the continued demand for high-quality office assets in premium locations. Both investors and owner-occupiers are actively seeking modern, well-positioned office spaces with long-term growth potential, and Cremorne House is clearly meeting that demand.
To date, Wilmac has sold 12 boutique office suites and two retail spaces at Cremorne House,
“The building rates achieved this year at Cremorne House surpass any other strata office sale in Cremorne, cementing its place at the top end of the market and clearly distinguishing it from other developments,” said Ben Baines, Director, Melbourne Metro Sales | Investment Services at Colliers.
With only six offices remaining, limited opportunities remain within the project.
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