Commercial property vendors in Sydney's Inner West and southern suburbs have enjoyed excellent sales results after choosing to sell their assets by auction.
A trophy property that houses an iconic Eastern Suburbs gym at 29-31 Alfreda Street Coogee overlooking Coogee Oval, the home of rugby union heavyweight club Randwick sold under the hammer for a whopping $16.8 million. According to selling agent Luke Smith, Director of Raine & Horne Commercial Inner West/ South Sydney, the superbly located retail asset logged 256 enquiries, while 43 contracts were issued. At the auction, 15 eager bidders pushed the price significantly above the reserve.
"Auctions work superbly in our market because most properties attract multiple buyers,” explained Luke.
"There is a time and a place for all methods of sale whether its auction, private treaty or Expression of Interest (EOI). However, in this market, auctions have a role to play as they deliver higher than expected prices for vendors."
An industrial building in prime position flexible b7 business park zoning at 68 Meeks Road, Marrickville recently sold for $3.12 million under the hammer. This stunning price was $220,000 above the reserve after interest from 7 qualified bidders jostled for the prized property during a spirited auction. The property also attracted almost 15,700 views online and 160 buyer enquiries, while 17 contracts were issued.
"Auctions provide bidders with a transparent and open competitive environment, and it provides vendors with an immediate and unconditional sale as contracts must exchange once the gavel comes down on the sale," Luke said.
Luke said that the market for industrial sales and leasing is robust in Sydney's Inner West and southern region. "Industrial yields are 4.0-4.5%, and good properties will achieve outstanding results."
Recently, an industrial investment at 1/49 Carrington Road, Marrickville, in the highly sought-after Carrington Centre sold for a complex record $9,565 per square metre. "The established home for popular specialist coffee roasters Double Roasters, the property is ideally positioned a short walk from two train stations and arterial roads and just 7 kilometres from Sydney's CBD.
"Not all agent's auction campaigns are the same. But we have great under-the-hammer sales experience and consistently deliver strong auction results for our vendors."
Yields for retail property are higher than industrial at 4.5-5.25%, while office space will sell for yields of 4.5 -5.0%.