Four central Auckland properties sold to separate purchasers for a total value of $11,678,000.
Four central Auckland properties sold to separate purchasers for a total value of $11,678,000.
In contrast to jittery equity markets, there are no indications the current buoyant commercial and industrial property market is likely to ease off any time soon, says John Church, Bayleys' national commercial director, in his introduction to Bayleys' latest Total Property magazine
"Real estate agents are frequently criticised for talkingthe market up but right now, the market itself is doing all the talking that's needed - and it is surprising even the most perennially optimistic among us," Church says.
"The clearance rate and prices achieved in August on properties featured in Bayleys' mid-year Total Property portfolio were phenomenal and even exceeded our own high expectations."
So far close to 40 properties with a total value of around $120 million have sold which is one of the best results ever from a Bayleys portfolio Church says. "It's an indication of just how much momentum the market has."
A total of 24 out of 29 auction properties in Auckland and Wellington sold at a clearance rate of 82 per cent with an average sale price of close to $2 million. "There were multiple bidders on most lots and strong competition resulted in some very good prices being achieved with all but three of the Auckland investment sales being concluded within a four to six per cent yield band," says Church
"Tightening yields continue to be a feature of the market, driven by historically low interest rates which just keep getting lower. There was little yield differential evident at the auction between lower and higher value offerings or property types, reflecting the depth of underlying demand for commercial property across all value ranges and all sectors of the market."
Around $70 million of non-auction sales have so far also been concluded from the Total Property portfolio in Auckland, the Bay of Plenty, Wellington and Christchurch.
The largest of these was the X Gallery, a meticulously refurbished Auckland CBD heritage building fully leased to 12 tenants and generating annual income of around $1.7 million, which sold for a confidential sum.
Four central Auckland properties were sold to separate purchasers at a total value of $11,678,000 with their Mixed Use zoning under the Proposed Auckland Unitary Plan permitting more intensive development to varying degrees, "These types of offerings have add-value investors and developers circling for opportunities at present," Church says adding that he expects the current buoyant market conditions to continue for some time yet and particularly while interest rates remain so low.
