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Huge day of Ray White Commercial auctions

By Liam O'Boyle

Ray White Commercial sold more than $16 million in property under the hammer today, with auction events at Canberra, Brisbane, and the Gold Coast.

Overall, 15 properties went under the hammer, recording an auction day clearance rate of 60 per cent.

Ray White Commercial Canberra agents Ben Faulks and Mark Thompson, in conjunction with Scott Stephens from Ray White Commercial Sydney North, achieved a 100 per cent clearance rate, selling five out of five properties under the hammer.

The top sale of the day went to the Brindabella Specialist Centre at 1/5 Dann Close, Garran, ACT, which sold for $3.34 million to a private New South Wales investor.

Mr Faulks said each property sold with a sub six per cent yield.

“We had multiple bidders on all properties. We found most bidders were investors who were cash buyers so the cost of funds for debt didn’t matter to them,” Mr Faulks said.

“There’s a degree of uncertainty because nobody, including the banks, has a clear view of where interest rates will be in six months.

“But to sell five out of five properties there’s obviously a lot of depth in the market, people just want certainty on price.

“The positive from today was that the transparency of the auction process meant they were confident to bid.”

Ray White Commercial QLD sold two out of three properties under the hammer at the Brisbane in-room auctions today.

The first property, Red Rooster Nundah, received a huge amount of interest, selling under the hammer for $2.28 million, a great result for listing agents Michael McCullagh and Lachlan O’Keeffe.

Located at 1409 Sandgate Road, the property attracted 21 registered bidders and four active bidders, with the winning bid going to a private Queensland investor.

“Red Rooster Nundah is an iconic North Brisbane staple that benefits from a high profile corner site with exposure to 45,000 vehicles per day,” Mr O’Keeffe said

Mr McCullagh said the property was a fantastic investment as Red Rooster and its parent company Craveable Brands were one of Australia’s strongest performing businesses.

“The underlying land provides the benefit of substantial future development upside,” Mr McCullagh said.

(Ray White Queensland chief auctioneer Gavin Croft calling the Ray White Commercial QLD in-room auctions)

A medical investment located at 58-62 Middle St, Chinchilla, also sold under the hammer for $2.635 million, to a private buyer from New South Wales.

Occupied by the Chinchilla Medical Centre for 30 years, Mr McCullagh said the centre provided strong income security, with long term tenants.

“The Chinchilla Medical Centre has been the premier medical centre in town since 1991,” he said.

“This is a defensive multi-tenanted investment on a large corner site with a captive local catchment that not only offers a secure anchor, but is supported by multiple national tenants including the ASX-listed Sonic Healthcare.”

Ray White Commercial Gold Coast also sold two properties under the hammer at the Ray White Surfers Paradise Group auction event.

A property at 3/2-4 Precision Drive, Molendinar, attracted four bidders, selling under the hammer for $610,000, well above reserve, in a great result for listing agent Jackson Rameau.

The second property at 4 Arjuna Way, Gaven, also attracted four bidders,selling under the hammer for $820,000 in a fantastic result for agents David Djurovitch and Brad Merkur.

Mr Rameau said there was still plenty of demand for vacant industrial properties.

“We’re finding sub-$1.5 million properties are still going particularly strong,” Mr Rameau said.

“North of that buyers are starting to bring out the microscope on lease details and yields.”

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