A $100 million commercial property auction billed as the biggest such event in the year has ended with a whimper, with almost 70% of the properties on the block passed in or withdrawn from sale.
The auction, held in Sydney and conducted by Colliers International, was supposed to see around $100 million worth of assets go under the hammer, including office buildings, retail properties and development sites.
But 23 of the 34 properties were passed in or withdrawn as bidding fell well below expectations. In the end, the properties that were sold fetched a total of $24 million.
An office building in Charles Street in Parramatta was the biggest sale at $12.2 million (on a yield of 5%), while a Red Rooster site in Lithgow fetched $1.3 million.
The auction result comes as something of a surprise, particularly given the results of a large auction held in Melbourne in early October.
That auction, conducted Burgess Rawson, saw $100 million worth of hotels and other commercial properties sold, with buyers’ interest described as “intense”.
However, it appears a gap has opened up between bargain-hunting buyers and sellers who believe the market has recovered.
If you want to learn more about commercial property, don’t miss our free webinar entitled ‘Top tips for buying and leasing commercial property‘ on 12 November at 2pm. Commercial property expert Steven Kingston from Charter Keck Cramer will explore the key points every entrepreneur should consider before they purchase or lease a commercial property and, best of all, tell you about the best ways to secure a bargain.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
