Despite the economic uncertainty created by the pandemic, commercial properties and market trends have captured the attention of readers of realcommercial.com.au.

From a wave pool to heritage properties with a dark past plus several notable Bunnings sales – here’s a look back at the commercial property stories that got Australia talking this year.

10. Berrima Gaol on the market

Few prisons in Australia have a history quite like the Berrima Correctional Centre in the Southern Highlands and most don’t end up on the market. This might explain why so many were drawn to this news story about a prison that was built and later rebuilt by prisoners.

The Georgian standstone structure was originally built by convict labour between 1835 and 1839, based on the design of a convicted carpenter who later received a conditional pardon. During World War II the property was turned into an internment camp by the Australian Army before being totally remodelled.

Berrima Correctional Centre was decommissioned last year. Picture: realcommercial.com.au

The outer wall and entrance were the only parts of the gaol to remain in tact, with the rest of the sandstone repurposed.

Renovations aside, between 1839 and 2011 the property operated as a goal.

The 1.98ha property also has two cottages, a tennis court, industrial kitchens, watch tower, 60 cells and offices.

There are multiple commercial and industrial facilities on site. Picture: realcommercial.com.au

The property has been zoned as a correctional facility and the new owner would require a rezoning development application.

The expressions of interest sales campaign has ended and the NSW government is currently reviewing the offers.

9. Pandemic proof supermarkets

With more Australians than ever before relocating to rural areas during the pandemic, investors have been chasing regional shopping centres particularly those with a major supermarket attached as the anchor tenant.

These smaller shopping centres have avoided the problems that larger metropolitan shopping centres have experienced during the pandemic, which makes them all the more attractive to investors.

Coles Woodend sold for a record $33.3 million. Picture: realcommercial.com.au/for-sale

A private group bought the Coles Swan Hill Shopping Centre for $20.075 million on a yield of 5.08%. This property included a Liquorland, Coles and several specialty shops.

Stonebridge Property Group handled that transaction as well as the sale of a Woolworths in Kyabram which a private investor purchased for $23.8 million on a yield of 4.84%.

DeGroup meanwhile fended off competition from 14 other parties to purchase the Coles Woodend for $33.3 million on a yield of 4.31%- which was a record price for a freestanding supermarket in regional Victoria.

DeGroup also purchased the CS Square shopping centre in Caroline Springs, Melbourne from Lendlease for $136.5 million while a private investor paid $19.15 million for a Woolworths Metro and four other stores inside an apartment complex in Ascot Vale.

8. Melbourne’s oldest home

For many Melburnians, Russell’s Old Corner Shop in King Street has been a constant in their lives.

Built in 1850, the cafe at the front of the premises has long been a fixture in an ever-changing city.

The couple were known to put on a show for customers. Picture: Herald Sun

Owned by actress Lola Russell and and her late husband George Dixon, the cafe had been something of a gathering place for artists over many years.

When it first opened, the shop sold goods to those headed to the goldfields.

Ms Russell was born at the property and lived upstairs for most of her life. She moved out after her husband’s death in 2017 and now lives in an aged care home.

The heritage-listed property at 328-330 King St is thought to be the city’s oldest home. It was originally listed for an expressions of interest sale before being sold at auction for $1.875 million.

Private investor Yan Qiu purchased the property and plans to restore it to its former glory.

7. Bunnings tipped to sell for $45m

With many Australians using the time in lockdown to renovate their homes, it’s little wonder that the potential sale of an outlet from the nation’s favourite hardware store would generate such interest.

Investor appetite for Bunnings Warehouses has been growing. Picture: realcommercial.com.au/sold

This Bunnings in Munno Para in Adelaide was highly sought-after as it was one of very few of the famous warehouses to publicly listed for sale in Australia this year.

The 16,936sqm site in Adelaide’s booming outer suburbs offered investors steady returns with a 12-year lease and fixed 3% rent reviews.

Colliers national director of investment services and capital markets, Alistair Mackie said the warehouse was in an ideal location that was set to benefit from both population growth and increased spending on local infrastructure.

“Bunnings Munno Para West is truly a future-proofed investment sitting within the heart of Playford, Adelaide’s fastest- and largest-growing local council area,” Mr Mackie said.

The property sold to investment group Charter Hall for $48.8 million in September.

6. Resort listing shows COVID related market fluctuations

This stunning resort, The Kooralbyn Valley, hit the market in March with some rather unusual language in the listing.

The Kooralbyn was listed with a “limited time COVID 19 special price”.  Picture: realcommercial.com.au/for-sale

The listing clearly states the resort is being offered for a limited time only COVID special price: “Limited time COVID 19 special price before it is taken off the market, under a cash unconditional term, instead of the retail price list of $100m, because it’s unlikely you will get a loan from any banks now and you should not borrow, like Harry Trigubuff, therefore completely eliminate your risk.”

Agent and owner Peter Huang said the property had been put back on the market after a sale had fallen through and he had received some “strong interest” from potential buyers.

“Just back on the market, after two confirmed and accepted cash unconditional offer failed to eventuate, with one still sitting on the buyer’s solicitor’s table for too long waiting for another director to sign, and another buyer has been shown the door after he tried to renegotiate the mutually agreed price using the COVID as an excuse. More buyers are on their way now with the COVID near the end,” the listing said.

Hotels and resorts had another bumpy year thanks to the pandemic, but some experts argue that with many of us more likely to go on driving holidays, regional hotel and leisure assets are becoming more attractive to investors.

The 327ha property has a golf course, 230-seat restaurant, 102 rooms, a private airport with a 1.4 km runway, a wedding and convention centre, a vineyard, tennis centre and polo fields.

The property remains on the market.

5. Holden test track makes $36.3millon

Whether you are a Holden or Ford fan, this 877ha test track is one sale you would have noticed this year as General Motors only sold the property in 2020 to Vietnamese automakers VinFast.

Holden’s former Lang Lang test track sold for a whopping $36.3m in 2020. Picture: CBRE

Opened in 1957, the test track had put everything from the old Kingswood in the 1970s up to modern day Astras through their paces. The site was sold by GM in 2020, which owns the Holden brand, as part of the company’s move out of manufacturing in Australia.

VinFast had originally invested heavily in the site and planned to use it to test its own vehicles and even open the site up to competitors to do the same, but the company listed the property for sale in October due to “unexpected situations brought about by COVID-19”.

Following the end of the expressions of interest campaign, at the time of writing negotiations remain ongoing with interested parties.

4. Air taxis coming soon to Queensland

While this story may seem like something out of the Jestons, Petrie in Brisbane is set to become home to the nation’s first air taxi base.

The first Skyportz is planned for the Australian Advanced Manufacturing Centre of Excellence at Petrie, Moreton Bay, in Brisbane’s north. Picture: Supplied

Skyportz plans to create its first base in the Brisbane north suburb, according to chief executive Clem Newton-Brown.

“Our first Skyportz will be built at the Australian Advanced Manufacturing Centre of Excellence at Petrie, Moreton Bay. They are investors,” he said.

“We have not announced any further sites yet as we are going to use this first test site to assess the level of community and political support for a broader network.”

The Melbourne start-up is developing a range of landing sites and is looking to partner with US company Electra who make airtaxis.

Skyportz ran a crowd-funding investor drive in October in a bid to raise $750,000 which it said would go towards air taxis being in the sky in Brisbane within five years.

Skyportz also hopes to develop a number of sites ahead of the 2032 Olympic Games, though no word yet from the Queensland government as to whether or not they support the transport infrastructure being part of the Games.

3. Investors chase another Bunnings

Bunnings Plainland in Queensland hit the market in June before it even opened its doors.

The new Bunnings in Plainland opened in June. Picture: realcommercial.com.au/for-sale

It was the second freestanding store to be publicly listed for sale this year.

Burgess Rawson Melbourne director Billy Holderhead admitted the site had attracted strong interest ahead of being sold at one of the auction house’s portfolio sales.

“This is a great opportunity to secure a property with arguably the best tenant in the retail freehold investment market,” Mr Holderhead said.

The 9339sqm store is located in a growth corridor and had a ten-year lease with options for a net rent of $935,000 per annum.

The property sold for $22.2 million to Melbourne-based investors who had been unable to inspect the property due to pandemic-related travel restrictions, Mr Holderhead said.

“The Bunnings buyer and underbidder were both Melbourne-based private families who weren’t able to inspect the property before the auction because of the interstate COVID border closures.

“They spent $22 million based on the confidence they have in the Bunnings business and confidence in the steady income stream,” he said.

2. Red hot property

The pandemic has affected change in many areas of daily life with brothels being among the businesses that struggled to attract customers in lockdown.

As a result, several brothels were put on the market.

A Woolloomooloo brothel was up for sale for close to $5m. Picture: realcommercial.com.au

These unusual properties with up to 11 bathrooms and ample laundry facilities, have hit the market in a range of suburbs, some of which like Woolloomooloo have been gentrified in recent years.

The Five Star City brothel in Woolloomooloo was listed for sale with a guide price of $5 million while another licensed establishment in West Gosford was listed as an “ideal strata subdivision opportunity”. The West Gosford property sold in November for $2,350,000.

Scarlet Alliance, Australian Sex Workers Association, chief executive Jules Kim said many sex workers “pivoted” to online and non-contact services during COVID.

“Sex workers have been very proactive in responding to COVID and the changing restrictions including lockdown,” Ms Kim said.

1. Surf’s up in Yeppoon

The quiet coastal town on Yeppoon in Queensland could soon receive an influx of visitors after a development plan for a wave-generating surf pool and tourist hub was lodged with Livingstone Council.

The facility will generate eight surfable waves every six seconds using a massive “plunger”. Picture: Surf Lakes

The facility will create 229 new jobs and will add an estimated $39 million to the local economy in the initial development phase of the project.

Surf Lakes’ general manager of global operations and international media and marketing director Wayne Dart said the site would initially be opened to the public for camping and glamping as well pop-up food outlets.

“It’s envisaged to be a huge tourist drawcard for the Capricorn Coast and Rockhampton regions,” Mr Dart said.

“We think Surf Lakes Yeppoon would attract 272,000 visitors around 2026 and 83% would be for the surfing experience. This would generate an estimated additional 31,000 visitor nights in the Livingstone Shire, creating $4.5 million in additional expenditure.”

The surf lake which would cost around $54 million is yet to be built and the project is currently at the public notification stage of the development application process with Livingstone Council.

Surf’s up in Yeppoon was the most-read story on realcommercial.com.au in 2021.