This article is from the Australian Property Journal archive
A RICHMOND industrial property has sold for $3.55 million under the hammer, following competition between five bidders pushing the price more than $500,000 above the reserve.
Teska Carson’s Matthew Feld and Luke Bisset sold the 152-154 Murphy Street property, near Victoria Gardens shopping centre.
Zoned Industrial 1, it comprises a 550sqm warehouse on a 608sqm site and traded with a short-term lease to a floor sanding supplies business with no further options, returning $75,279 per annum net.
Feld said demand for industrial properties in Richmond, and other city fringe locations, is being driven by developers and investors looking for opportunities to buy properties that may offer potential for conversion to higher value uses including office and residential development.
“The apartment market has been strong in city fringe areas and we are now seeing the same sort of momentum in the office market with increasing enquiry for properties with potential development and/or office conversion upside and that has seen many industrial properties withdrawn from the market.”
He said properties with wide or dual frontages located closer to essential amenities, and with vacant possession or short-term leases, were most in demand.
Murphy Street and adjacent Blazey Street have seen a number of industrial sites change hands since late last year, all with short-term leases.
A local developer paid $7.05 million for the 1,372 sqm 43-57 Blazey Street warehouse property in June, while 39 Blazey Street changed hands for $1.81 million and number 41 for $2.2 million.
On Murphy Street, number 77 sold for $2.75 million, and number 79 for $1.82 million.
Australian Property Journal
