Commercial auctions defy residential slump

The 7-Eleven outlet in North Melbourne sold at auction.

Auctions of commercial property have been spared the gloom that has descended on the residential market with the latest CBRE portfolio reaping an 86% clearance rate as almost $48 million worth of property was sold.

A series of private buyers snapped up six out of the seven properties auctioned by the firm last week, with the largest lot — a Collins St building sold by developer and publisher Morry Schwartz — going for $21.55 million.

That complex, known as Collins Corner, at 620 Collins St, went on a sharp 4.13% yield – the best result recorded on the Thursday evening event.

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Two 7-Eleven service stations – one in North Melbourne and the other in Kallangur, Queensland – sold for prices of $4 million and $5.27 million respectively. The Melbourne asset showed a tight 4.57 % yield and the Queensland asset was at a yield of 5.88%.

620 Collins St Melbourne

The building at 620 Collins St in Melbourne was largest lot sold at the latest CBRE portfolio auction.

An Officeworks in Hobart, sold for $11.725 million showing a yield of 6.81% while Kiewa Kids Early Learning in the regional centre of Albury sold for $2.65 million showing a 7.1%.

CBRE has auctioned 42 properties as part of the portfolio business since last year, recording an 88% clearance rate on properties that had an average price of $9.6 million.

CBRE national director investments Mark Wizel says the bespoke premium auction platform is performing well.

This article originally appeared on www.theaustralian.com.au/property.