Media release - 12th November, 2015
Australian commercial property remains a highly sought-after investment, with sales set to break the $20 billion benchmark for a third year in a row, according to a recent report from Commonwealth Bank.
“We’re seeing plenty of activity in industrial and retail markets priced below $5 million, with assets priced between $1 million and $3 million very popular with yield hungry, self-managed super funds,” said Angus Raine, Executive Chairman, Raine & Horne Commercial.
“Low cash rates are also helping the smart money find its way into commercial real estate, which is producing some good sales results for vendors.”
In inner Sydney, for example, a free standing industrial building at 32 Milton Street, North Ashfield, recently sold at auction for $1,525,000.
“This result was 29% above the vendor’s reserve figure and our team was inundated with enquiries,” said selling agent Luke Smith, from Raine & Horne Commercial South Sydney/Marrickville.
Mr Smith said Raine & Horne Commercial South Sydney/Marrickville also received close to 200 enquiries for a prime development site in Sydney’s Inner West, which currently includes three vacant retail properties at 105 The Crescent, Homebush West.
“Eight registered buyers competed hard for the property before pushing the price to $5,600,000, which is a street record,” said Mr Smith.
A substantial retail building at 229 Marrickville Road, Marrickville also sold recently under the hammer for $355,000 above the vendor’s reserve.
“The marketing campaign attracted 11 highly-committed bidders, who haggled the price up to $2,305,000,” said Mr Smith.
Meanwhile, one of inner Brisbane’s few remaining heritage-listed factory buildings has changed hands for the first time in 35 years.
The two-level 1400 sqm former boot factory at 14 Maud Street, Newstead, was sold after auction for $3.8 million plus GST by Raine & Horne Commercial Brisbane North’s Alex McSweeney, after attracting plenty of attention.
“We had 81 inquiries during the campaign, with the ultimate buyer being a DIY superfund,” said Mr McSweeney.
“This is a freehold property, which is very popular with buyers because they don’t have to worry about body corporates.”
In Melbourne, Jason Beveridge, Principal of Raine & Horne Commercial Victoria, says it’s been a consistent year for industrial property markets.
“It’s been a stock standard year for the sub-$1 million markets and we expect a reasonable amount of activity for industrial assets in the run-up to Christmas,” said Mr Beveridge.
“We’ve seen some tenants upgrading to owner-occupiers, which makes a lot of sense in the current low interest rate environment.”
For further media information please contact:
Angus Raine, Executive Chairman, Raine & Horne Commercial on 0409 920 697
Andrew Harrington, National Communications Manager on 02 9258 5400
Raine & Horne Commercial knows local and regional property markets intimately, with the support and systems of a long-established national and international property group. Our clients benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.