Auction activity is heating up in Brisbane with Colliers International transacting one investment asset just hours prior the auction, with another selling under the hammer after receiving over 20 bids.
419 Upper Edward Street in Spring Hill sold for $3,165,000 last Thursday at the Colliers International Brisbane in room auction. And the 91 and 93 Wilston Street in Newmarket was snapped up by a local investor for an undisclosed figure prior the auction on the same day.
Hunter Higgins, Associate Director of Investment Services at Colliers International marketed the properties with his colleague Richard Blanch. Mr Higgins said they had overwhelming interest for the Spring Hill property during the campaign period receiving in excess of 60 enquiries and carrying out 18 inspections leading up to the auction.
“On the auction day we had a full room and spirited bidding between six registered buyers who hotly contested over 20 bids in total to finalise the sale. In the end the property sold to a private Melbourne based investor for $3,165,000.
“This buyer is chasing Brisbane investment opportunities with upside as they could see more value in this market, compared to Melbourne and Sydney where yields are becoming increasingly sharp. On the existing passing income this sale reflects a yield of 7 per cent; however on an equivalent yield it reflects 5 per cent.
“Auctions are creating a great buzz and competitiveness amongst prospective purchasers. Investors, owner occupiers and developers are out in full force; the market is moving quickly and now is the perfect time for vendors to capitalise on the strength of the market and current competitive nature of purchasers ,” said Mr Higgins.
The Spring Hill property features a fully refurbished three storey building with 564sqm NLA that occupies a prominent 336sqm corner site with three street frontages. The building provides lower level office accommodation, ground level, open plan restaurant, with two alfresco dining areas coupled with a boutique coffee shop fronting Upper Edward Street. Current tenants include Journey Family Lawyers, Al Beik Lebanese restaurant, Coffee Hut and SCC Legal who generate a total of $236,283 of annual net income.
Mr Blanch said the Newmarket property which sold to a local private investor hours before the auction is a mixed use investment over two lots, positioned in a high growth corridor, with a fully leased annual net income of $103,993.
“The property comprises a refurbished 346sqm commercial building with two established tenants on new three year leases with options. It is leased to Studio U (193sqm) and The Queensland Coeliac Society (153sqm),” said Mr Blanch.