A Chinese buyer has nabbed the first Melbourne CBD sale of 2018, after snapping up a historic retail asset on Lonsdale Street.

According to real estate firm Savills, who brokered the $10.15 deal, the two-level retail asset has long been renowned as the home of International Cakes in the city’s Greek precinct, and sold to a Chinese buyer on a sharp yield of 3.94 percent.

Savills Australia’s Nick Peden, Clinton Baxter and Benson Zhou, in conjunction with Burgess Rawson’s Jamie Perlinger, brokered the deal on behalf of the local investor vendor at a rate of $53,989 per sqm.

“The scarcity of Melbourne CBD property on the market is apparent among active buyers and, as a result, there is significant pent-up demand, which is leading to strong sale results and setting the precedent for the rest of the year,” Peden said.

Baxter said over 100 parties had expressed their interest in the property, and several offers were received.

“We have several disappointed under-bidders who missed out on this opportunity and are keenly awaiting their next opportunity,” he said.

Zhou said the buyer was attracted to the building’s prime CBD location and reliable long-term tenants.

Looking forward, Savills anticipate an active 2018 due to increased buyer demand and the upward strength of the CBD market, with ever-increasing population growth, low vacancy rates and increasing rents.

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