$400,000 for tiny 8sqm property

Size was no barrier for an investor who paid $401,500 for one of the smallest commercial properties ever to hit the market.

The tiny kiosk at Northcote Plaza Shopping Centre, just north of Melbourne’s CBD, attracted strong bidding at auction, eclipsing its $350,000 reserve.

The property is leased to mobile phone repair service The Repair Bee until 2020 with a further five-year option, but agents were unsure how it would perform at auction, such is the rarity of this type of offering.

A private investor who already owns properties within Northcote Plaza saw off two other bidders to secure the kiosk on a 5.1% yield.

The kiosk measures just eight square metres but sold for more than $400,000.

The property had earlier attracted more than 50 enquiries throughout its campaign, according to Teska Carson agent Fergus Evans, who was pleased with the price.

“We were very happy. It was certainly a good number for such a small little kiosk,” Evans says.

Evans earlier said a kiosk being offered for sale was so rare that he and his colleagues couldn’t recall ever selling another one.

“It’s a bit of a rarity. I myself have never really sold a kiosk before and many of the team here haven’t either,” he said.