A strong appetite for commercial property was on display at Burgess Rawson’s 119th Portfolio Auction at Melbourne’s Crown Casino yesterday, with more than 300 investors eyeing fourteen properties, and while not all of the results fell in the vendors’ favour, it was a strong indication of a robust market.
The best performing properties in the Portfolio included a brand new childcare centre in Glen Huntly which sold to a local Melbourne investor for $7,350,000 on a strong 5.38% yield, while an IGA supermarket in Somerville sold for $3,019,000 on a 6.92% yield.
The Glen Huntly property is an architecturally designed 615 sqm dual level childcare facility which is tenanted by Buddies Early learning to 2033 and offers a net return of $395,065 pa.
According to Burgess Rawson Melbourne Director, Shaun Venables, yesterday’s result showed there is still a gap between vendor and buyer expectations.
“While the clearance rate under the hammer was not as strong as the previous day in Sydney, we had near record attendance with more than 300 people packing the auction floor and a dozen nearly on the phones from interstate and overseas,” Mr Venables said.
“The properties that attracted the most interest were our three childcare offerings – two selling under the hammer and one prior to auction for a combined value of $11,235,000. This was a great rebound from late last year when childcare yields softened.”
“Overall, we are optimistic of continuing positive market conditions in 2018, particularly with Sydney achieving a clearance rate of 82% yesterday.”
Queensland’s property market continues its solid performance in 2018, with strong interest in a 7-Eleven at Coolangatta and a Bridgestone tyre outlet near Cairns, with the properties selling for $1,222,000 and $1,600,000 respectively.
Mr Venables said the nation’s south eastern investors continued to flood north to take advantage of the value still available in most key Queensland markets, such as the Gold Coast and parts of Far North Queensland.
“All Queensland properties at auction received strong local and interstate interest. With increased development, infrastructure and population growth, investors can see significant long-term value in key Queensland regions. It’s a fantastic sign for the state’s commercial property market,” Mr Venables said.
“The Bridgestone property at Smithfield, near Cairns, was a record for the region, selling for $1,600,000. We’ve seen investors turn their interest to the tyre and automotive sector due to the stability and long-term strength of these tenants.”
Burgess Rawson’s Sydney portfolio auction has Australia’s commercial property market buzzing, following its impressive 82% clearance rate yesterday. Rounding out the day’s successful results were prime childcare and retail assets across New South Wales, Queensland and Western Australia.
For further information on about Burgess Rawson’s Melbourne Portfolio Auctions, Shaun Venables can be contacted on 0411 860 865 or email firstname.lastname@example.org
To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.