This article is from the Australian Property Journal archive
FOUR commercial properties across Melbourne were sold at auction by Colliers International in one day, attracting strong interest from local and offshore buyers.
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Colliers CBD sales director Daniel Wolman said the strength of the sub-$10 million market was reflected in recent turnout and results.
“In the entry level market, where properties range between $1 million to $10 million and investors are looking for affordability, auctions are a great option for all parties.
“For vendors, auction conditions create increased competition from a wide range of buyers who all come together on the day and battle it out for a property, encouraging prices to reach maximum levels,” Wolman said.
“But it is also a great way for buyers to purchase because it’s the most transparent way to buy a property – they know exactly what they’re buying and exactly who they are bidding against.
“The continued success we are seeing at auction demonstrates the strength and confidence in this market. On the back due to low interest rates, buyers are seeing a better return in property than anything else in the current climate,” he added.
Wolman and colleague Oliver Hay recently sold 51-53 A’Beckett St under the hammer for $4.6 million to a Hong Kong buyer, reflecting a rate of $31,293 per sqm for the 147 sqm site and a yield of 4.8%.
The three-level office and retail building currently provides 257 sqm of office accommodation on the upper levels and 95 sqm of retail on the ground floor, currently home to a restaurant, as well as a rooftop terrace of approximately 27 sqm.
Wolman said the auction attracted a 100-strong crowd and 20 bids from five potential buyers.
“Whilst most bids for 51-53 A’Beckett St did come from domestic buyers, the final and highest bidder was a buyer from Hong Kong who had a representative on the ground bidding on her behalf,” he added.
On the same day, Colliers sold another three other properties.
Agents Guy Wells, Pat Connolly and Ted Dwyer sold The Laird Hotel at 149 Gipps St Abbotsford to a local private investor for $2.66 million on a yield of 4.5%, in front of a strong crowd of approximately 80 people with competitive bidding from three parties.
“The property was well received during the campaign from a variety of owner-occupiers, investors and developers,” Wells said. “This strong sales result reflects the substantial appetite for inner city hotel investments we are currently witnessing,”
The Laird Hotel is a traditional two-storey corner pub with a ground floor bar, pool room, nightclub area and large outdoor courtyard. The first floor provides six hotel accommodation rooms and common lounge area and kitchen.
Agents Hamish Burgess, Jeremy Gruzewski, Ted Dwyer sold six tenancies across three side-by-side addresses (605-613 High St, 1-3 Stratalbyn St and 31 Valerie St), for $3.93 million to a local investor.
“In front of a 50-strong crowd, three bidders fought it out before the property was knocked down at $3.93 million,” Burgess said.
“Bidding started at $3 million, and all three bidders were local private investors.
“The property attracted significant offshore and local interest however, with all prospective purchasers attracted to the high profile corner location, substantial 50m frontage to three different Sts, and the flexibility on offer for future use of the property, including potential for redevelopment or repositioning,” he added.
The substantial 688 sqm landholding comprises a two-storey commercial building currently home to five retail shop fronts and a first floor office/residence.
Finally, agents Ashley McIntyre and Brent Glassford sold a 470 sqm industrial strata property at 9/67 Elm Park Drive Hoppers Crossing to a private investor through their self-managed superannuation fund for $555,000.
“There were four bidders in total and a crowd of about 50 people in attendance on auction day.
“When the vendors of 9/67 Elm Park Drive approached us looking for a fresh approach to selling their property, we advised them to take it to auction. Auction was the best option for this property, as it shows urgency and creates competition.” McIntyre said.
Australian Property Journal
