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        Chinese investor pays A$8,888,888 for office block in Melbourne

        (Xinhua) Updated: 2015-03-27 11:45

        MELBOURNE -- A Chinese investor will be hoping that luck comes his way after paying 8,888,888 Australian dollars ($6.96 million) for a three-level office tower in Melbourne.

        In Chinese culture, eight is thought of as a lucky number, signifying wealth.

        The building, located at 415-417 Collins Street in Melbourne, was expected to sell for around $5 million, but the buyer had to fight off 50 other bids from interested buyers.

        The bidding for the office tower commenced at just over $3.1 million, and drew interest from 12 separate bidders and a 200 crowd of onlookers - but it was an unnamed Chinese investor who won the auction with the "lucky" bid.

        Real estate agent Josh Rutman, from CBRE Australia, said that due to the falling value of the Australian dollar and interest rates being at record lows across the country, overseas investors were increasingly prepared to bid well above the asking price.

        "There is now genuine competition between both local and offshore buyers and this is being largely driven by the record low interest rate environment as well as the reduction in the value of the Australian dollar," Rutman said on Thursday after the auction.

        Rutman said those factors, combined with the location and history of the building, resulted in the asking price being eclipsed by almost $2 million.

        The huge price paid for the building means that each square meter of net lettable space is worth just more than $8,000, a staggering price rarely seen in Melbourne's real estate market.

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