Prices surge as investors vie for ‘risk-free’ assets

Published on: 12/11/2021

Almost $60m worth of Queensland assets were sold under the hammer as local and interstate buyers sought secure investments.

Burgess Rawson’s second live Brisbane auction since Covid hit saw 13 properties sold with fast food, childcare and medical assets attracting most attention. There were five remaining properties under negotiation.

Burgess Rawson’s joint head of agency QLD Andrew Havig said about $57m worth of properties were sold with security being a major factor in investment decisions.

“Fast food, childcare and medical were the strongest performing asset classes with the length of lease, quality of tenants, very much on people’s minds,” he said.

“Those properties with shorter leases did not have as much interest from bidders.”

The best result was a local private investor paying $4.93m for a KFC in Berrinba south of Brisbane in a deal that resulted in a yield of 3.53 per cent.

Other deals included: 

  • Chempro Chemist, Palm Beach – $1.835m 3.98 per cent yield 
  • Hairdresser/barber retail, Brisbane CBD (Charlotte St) – $3.485m, 4.37% 
  • Domino’s, Surfers Paradise – $1.395m, 4.44% 
  • Journey Early Learning, Banyo – $4.66m, 4.69% 
  • Childcare centre Urangan, Hervey Bay – $3.27m, 4.84% 
  • Office Nundah – $6.851m, 5.10% 
  • Petit Early Learning, Marian, near Mackay – $4.75m, 5.66% 
  • Industrial, Bohle (Townsville) – $11.5m, 6.25%

Mr Havig said there have been more property listings over the past two to three months with vendors keen to capitalise on demand.

“We’ve had a sustained period of growth in capital values through the year and there could be a feeling that it’s time to realise the value of some of these assets,” he said.

“However, while there is more stock we are still outweighed by bidders with the ratio of registered bidders per asset being about 9.6.”


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