Clearance rates: the national state of play

National auction clearance rates in the new financial year so far have been subdued compared with the 60% rate recorded in the last week of June, according to RPData figures.

Of the 41 properties taken to auction in the week ending 11 July 11 – and that was 33 more than went under the hammer in the first week of July – fewer than 44% sold.

Compared with the same time last year, last week’s clearance rates were even weaker.

More than 68% of the 38 properties taken to auction in the second week of last financial year were sold.

In the month to 11 July, 121 properties of the 220 auctioned recorded a successful result.

In NSW, the stand out result was the $4.17 million paid for a shop and office at 183 Harris St in Pyrmont. Total area was 700 sqm on 390 sqm of land, including seven car spaces.

In the month to 11 July, 121 properties of the 220 auctioned recorded a successful result.

Retail property fared better than other categories, with clearances including $1.55 million paid for a 190 sqm shop at 97 Great North Rd, Five Dock, $1.87 million paid for a 187 sqm shop at 83 Glebe Point Rd, Glebe and $1.8 million for 364 sqm at the AWA Building, 2/45 York St in the CBD.

On the industrial front, $2.1 million changed hands for a 1250 sqm warehouse at 66-72 Carlingford St, Sefton, and $1.62 million was paid for another half that size at 33 Sydenham Rd, Marrickville.

In Victoria, a 3480 sqm waterfront block in Lorne that was  marketed as an opportunity for hotel/leisure developers sold for $2.5 million. With a 35m frontage, the property at 14-16  Great Ocean Rd is  zoned residential.

Just two other properties breached the $1 million mark. A 861 sqm warehouse at 20 Mills St, Cheltenham, sold for $1.17 million and a 720 sqm office block at 218 Blackburn Rd, Doncaster East, settled for $1.11 million.

RPData’s only recorded successful Queensland auction was the $480,000 paid for a 800 sqm  office/warehouse at 12 Florence St in Urangan.

In Western Australia, $1.51 million was paid for a 879sqm industrial property at 10 Meares Way, Canningvale.

Fragrance in national spending spree

JLL has facilitated yet another deal in Singapore-based Fragrance Group’s recent Australian spending spree, with a Perth CBD transaction.

Acting for Assignor Westbridge Property Group, JLL this month secured an option from Fragrance to pay $40 million for a development site at 374-396 Murray St that is now used as a car park.

JLL said the deal for the 4926 sqm property included development approval for 286 apartments over 31 levels, 14,000 sqm of offices, plus ground floor retail space.

Last month, Fragrance bought two Melbourne properties – the Savoy Tavern site at 134-160 Spencer St for $44.5 million and the 24-storey building at 555 Collins St for $78 million.

JLL executive John Williams said both sites would be developed into mixed use, high-rise towers that could potentially soar up to 100 storeys, if Fragrance succeeds in gaining planning approvals.

Melbourne deal 50% above reserve

The Savills team has closed a deal at 50% more than the reserve for 382 Elizabeth St, Melbourne.

The distinctive, period-style, two-level building sold for $7.67 million on an initial yield of 1.6%.

The sale equated to an impressive $23,470 per sqm. The 800 sqm building is partly leased to Gloria Jeans Coffee, with the rest vacant.

According to Savills, the vendor bought the property for $780,000 in 1992, benefitting from a 10-fold increase in value from its recent sale.

Airport resort checks in for sale

The Rydges Darwin Airport Hotel and Resort have been offered for sale in a campaign that closes on August 28.

CBRE has been appointed to manage the transaction for the combined 317-room properties, which are in a region on the verge of producing major gas exports to Asia.

According to the agency’s hotels chief, Wayne Bunz, airport hotels typically outperform competitors and, as such, these properties are likely to appeal to Asian investors looking to gain a brand profile in Australia.

Mr Bunz said vacant possession was available if required by potential buyers who wanted to rebrand the properties.

“Darwin is the investment hot spot of Australia right now, with over $50 billion in current infrastructure and LNG development projects occurring in the region,” Bunz says.

The hotel properties for sale are also set to benefit from a $60 million upgrade of the Darwin Airport now under way, CBRE says.