15/10/2010 - Investors Going For The Sure Thing
Investors are still playing it safe in the Brisbane market, pouncing on property offerings with long-term leases in place and solid returns.
In one of the latest deals, a ground floor strata titled office in the city's northeast has sold under the hammer for $1.307 million.
It was snapped up by a Brisbane-based couple for their investment portfolio.
The property at 2/34 Navigator Place, Hendra, comprises 330sqm of office space and is the corporate headquarters of expanding real estate chain Go Gecko Property Sales.
Raine & Horne Commercial's Lawrence Temple and Trent Bruce fielded about 30 inquiries from investors - many of them with self-managed superannuation funds.
On auction day, the property attracted spirited bidding from four potential buyers.
Mr Temple said the winning bid was "a little above the vendor's expectation and reserve price".
"Overall, there's a lot of activity in this price range up to $2 million," he said. "It's still firing really well and the buyers don't mind a tighter yield for a quality property with a good tenant and solid lease in place."
Go Gecko recently relocated to the Hendra property, committing to a 10 year lease with a five-year option. It returns a net rental of $102,300 a year, equating to $310/sqm net plus outgoings and GST.
Mr Temple said as a low risk property with security of income, the property had practically sold itself.
"You don't often get a new building with a national tenant and a 10 year lease at that price point," he said.
Mr Bruce added that the sale was testament to the growing appeal of the Hendra area and the precinct surrounding the Brisbane Airport.
"It's really coming of age and is becoming a very sought-after area," he said.
For further information contact Marketing Agents Lawrence Temple on 0423 591 534 or Trent Bruce on 0423 591 528