Investors eye the Sunshine State

Friday 13 April 2018

ALL Queensland properties on offer at Burgess Rawson’s latest round of auctions have sold under the hammer, with investors scrambling for high returns.

Investors eye the Sunshine State

The biggest sale was a Sydney investor who paid $1.6 million for a Bridgestone Select leased property at 38 Mount Milman Drive in the Cairns suburb of Smithfield.

The sale of the 803 sqm building on a 1184 sqm site realised a yield of 6.21 per cent.

Burgess Rawson’s Glenn Conridge, who marketed the properties with Jamie Dewe, said while a number of Sydney and Melbourne properties were passed in, Queensland assets all sold under the hammer.

“The attraction of Queensland is that you can get that 1 or 2 percentage points better in terms of a return when compared to Sydney and Melbourne,” he said.

“The market is looking for value at the moment and there’s always a constant fear of possible interest rate rises in the future.

“So investors would rather be buying at 6 or 7 per cent than 4 or 5 per cent, if they can avoid it.”

In other deals:
- A Singaporean investor paid $1.222 million (5.87 per cent) for a 110sq m 7-Eleven store under the Reflections Resort at Lot 19, 110 Marine Parade, Coolangatta.
– A Sydney investor paid $620,000 (5.95 per cent) for a 76sq m Liquorland at 29-31 Hardy Rd, Mount Sheridan.
- A local investor paid $830,000 (7.45 per cent) for a 213sq m Ray White-leased property at 1-3 Rabaul St, Trinity Beach.
– A Brisbane investor paid $493,000 (7.85 per cent) for a 225sq m Fairburn Bakery leased property at 8 William Murray Drive, Cannonvale.

View the original article here.

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Originally written by Chris Herde, Brisbane Courier Mail

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