Commercial auctions defy residential slump
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%.
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.