Confidence in the commercial property market is growing and Property Analyst, Dominic Aungles at Colliers International expects even more auction activity in the latter half of 2015. The first half of the year saw 31 commercial properties and development sites go to auction in the ACT.
“Residential development sites accounted for 67 per cent of all sites taken to auction and accounted for more than $100 million in sales.
“The clearance rate was extremely high at 95 per cent,” said Dominic.
The remainder of properties taken to auction included childcare sites, industrial, retail and office strata units.
Colliers International research revealed that no investment properties sub $5 million were auctioned, however they believe properties in this category have been scarce across Canberra as owners hold onto quality assets with few other opportunities to buy.
Auctions held nationally last month saw several properties sub $6 million achieve yields well under five per cent; highlighting demand for investment properties is far exceeding supply.
Dominic said, “We anticipate that sales results achieved so far this year will see more owners taking their properties to auction, expecting competitive bidding environments that will result in the highest possible sale price and most favourable terms and conditions.”
Colliers International research shows that seven properties are expected to go under the hammer in Q3 2015.
“This is a trend that we anticipate will continue in the private sector until the end of the year,” said Dominic.
The ACT Government’s indicative Land Release Program is again likely to add to this auction tally.
“There is the possibility of at least 14 sites that could be auctioned over the next six to 12 months.
“These sites include assets from CBD land holdings, community facilities and prime residential development sites in highly desirable locations,” said Dominic.