‘Exceptional’ Colac Auction Result

A Colac business property has sold at auction for $970,000, well above what agents were expecting. Charles Stewart Real Estate’s Anthony McDonald said the agency and Burgess Rawson had an auction for the Reece Plumbing building at 48 Rae Street last week. Mr McDonald said 24 buyers registered to bid on the property. He said the result was “exceptionally good”. “We had anticipated it would fetch around $800,000.” Both the buyer and seller were self  managed superannuation funds. Mr McDonald said the final price meant the property had a yield rate of 3.82 per cent, which was a record low yield for Colac. The yield rate represents how much an investor can expect to make from a rental property in a year, as a percentage of its overall value. Mr McDonald said high investor interest in Colac properties meant yield rates had fallen from about seven per cent four years ago. He said the latest result was proof of the high interest in Colac property. Reece has been a tenant of the Rae Street site since 1999, and renewed its five-year lease last year.