Childcare the darling again at Burgess Rawson auction
The commercial property market is continuing to tick over through the winter months, with just over half of the properties on the block selling at a Burgess Rawson investment portfolio auction in Melbourne on Wednesday.
Childcare centres were again enthusiastically sought after by investors, making up five of the 14 properties sold, with yields ranging from 5.02% to 6.27%.
Around $75 million worth of property was sold across two days of auctions in Sydney and Melbourne.
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But the prices vendors are demanding may be becoming overly optimistic for some properties, as owners attempt to cash in on the popularity of commercial assets.
A top bid of $5.3 million wasn’t enough to convince the owner of a Hungry Jack’s at Altona North in Victoria to part with the property.
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It was passed in, despite the yield at that price being just 4.2%, and agents were in negotiations with buyers after the auction to wrap up a sale privately.
A United service station at St Helens in Tasmania was also passed in after bidding reached $2.5 million, while a prime Melbourne bayside childcare centre in Sandringham was also passed aside at $5.7 million.
But there was no such concern for a childcare centre at Indooroopilly in Queensland, which recorded the day’s lowest yield, at 5.02%, after selling for $3.01 million.
A property leased to Commonwealth Bank and a sushi bar in the regional Victorian hub of Bairnsdale sold for $1.505 million on a 5.32% yield, while a childcare centre at Point Cook achieved the day’s top price of $5.78 million – a yield of 5.53%.