Auction highlights appetite for commercial property

The former Spagalimis Pizza site on the corner of Victoria and Dorset Streets fetched $2.5m. Photo / Supplied

More than $9 million was paid for commercial property that went under the hammer at the latest Colliers International auction in Christchurch.

Mark Macauley, general manager of Colliers Christchurch, says investor remain hungry for commercial property in and there was still substantial unsatisfied demand.

"This was one of the busiest auctions we've had with more than 200 bids recorded over the eight properties which sold under the hammer," Macauley says.

"This highlights the continued strong interest in the commercial property market and we expect to see a continuance of the strong investor demand throughout 2018 with a limited supply of properties available and a keen investor demand."

Bidding was lively across the spectrum of properties in a packed auction room.

The 'as is where is' apartment market continued to yield strong results for body corporates opting to sell. The latest to sell for $2.1 million was a complex of eight townhouses in prestigious Conference St on the city fringe near Bealey Ave.

Other highlights included the former Spagalimis Pizza site on the corner of Victoria and Dorset Streets, which was keenly sought, eventually fetching $2.5 million.

A complex of eight townhouses in Conference St near Bealey Ave sold for $2.1m. Photo / Supplied

Interest was also strong in new retail units at Wigram Terminal with four of the five selling in prices ranging from $1,120,000 to $1.75m. Built in 2017, the multi-unit building sits on a land area of 3800sq m with a total net lettable area of about 1420sq m.

Consisting of seven separate stratum in freehold unit titles, it comprises five ground floor retail tenants on 10 year leases. They include a restaurant and bar, and a gym. The complex has a passing income ranging from $30,000 to $120,000 with future growth opportunity.