Self-managed super funds are fueling demand for small offices that can be purchased using the fund structure.

Recently, four offices in W Property's North Sydney strata project at 7 Ridge Street were purchased.Nick Heaton of CB Richard Ellis Metropolitan Properties negotiated the sales at rates ranging from US$4,227 a square meter to US$4,545 a square meter.

All of the suites are 110 square meters meters in size and were sold in tandem with two car spaces. The sale prices ranged from US$465,000 to US$500,000. "Having identified the underlying demand from SMSF's for small strata offices, W converted the Ridge Street building to six suites," Heaton said.

Two of the suites were sold to sitting tenants and the remaining four have been sold to super funds. "The sales and high price paid per square meter highlight the growing demand for small offices that can be purchased by people using an SMSF structure," Heaton said. "There has been growing demand for this type of product from people who are moving away from managed super funds after their poor performance since the Global Financial Crisis."

Self-managed superannuation funds are considered do-it-yourself funds that cater for a group of people and and regulated by the Australian Taxation Office.