The early stages of the new financial year have been extremely solid, despite minimal trepidation from some aspects of the buyer market, due to rising borrowing costs and inflation concerns.
Good quality properties continue to achieve strong results, albeit with less buyers competing for the product whilst everyone adjusts to recent market changes.
From a retail perspective, 236 Lower Heidelberg Road, Ivanhoe East sold for $1.7M, representing a 4% yield. Two industrial properties in Thomastown sold at very sharp returns. 16 Milne Street at 2.5% return and 29 Temple Drive returning $75k per annum, sold for $1.85M reflecting a 4% return.
Vacant Possession Industrial continues to produce very buoyant results
A warehouse in Mirra Court, Bundoora sold for $3.7 million ($2.500/m2) and two separate recent auctions in Waterdale Road, West Heidelberg achieved $1.585M and $2,2M respectively highlighting the strong demand from owner-occupiers who appear unperturbed by the recent RBA rate rises.
We have eight commercial auctions scheduled for October including 59 St Hellier Street, Heidelberg Heights which covers 1450 m2 of Industrial 1 zoned land in one of the area’s premier streets. There are two retail opportunities in East Ivanhoe with one a corner strata space at 234 Lower Heidelberg Road, a long-term chiropractic business, anticipating 4.5-5% return. Also, a mechanical workshop and dwelling in Bell Street with re-development potential and will be auctioned later in the month of October.
We anticipate a steady run of campaigns leading towards the Christmas break. Leasing enquiry remains relatively positive with strong incentives still being offered to quality tenants.
If we can help you with any commercial property query or specific requirement you may have, please don’t hesitate to contact our office and one of our Commercial Team will be delighted to assist.
For commercial enquires please call 03 9497 3222 or to book a no obligation appraisal.
