Sub $5 million commercial market strong in Melbourne
Some 27 retail strip properties have sold for a total value of $60.098 million in the last three months in Melbourne's inner-east region, driven from the sub $5 million commercial investment market.
Teska Carson executive, Matthew Feld said buyers had paid $300,000 to $500,000 over reserve for property within the area, with one buyer, an off-shore fund, paying $3.4 million - more than $600,000 over reserve - on a very skinny 2.9% yield for a fully leased retail property on Lonsdale Street.
"In the latest (unreported) auctions a Hong Kong based private investor has paid $4.8 million on a tight 4.35% yield for a retail and office investment at 669-671 Glenferrie Road, Hawthorn, while an owner-occupier paid $1.07 million to fight off investors for a stand-alone retail/commercial property at 335 Swan Street, Richmond," he said.
"There are a combination of factors at work here but the key drivers have been the increase in competition from the sheer rise in numbers of investors – including a significant uptick in numbers of overseas and SMSF investors over this time last year - and also the current lack of quality stock."
