Strong surge in Auckland sales
A strong surge in activity over the last two months has contributed to a record year across all four offices that make up Colliers International’s Auckland investment sales team.
Director Gareth Fraser says the market has never been stronger.
“Sales activity across the wider Auckland region has been remarkable in the last couple of months, with some eye-wateringly low yields being achieved.
“At a recent auction at our North Shore office, two industrial properties sold at yields of 3.45 per cent and
3.67 per cent respectively. “While such low yields are yet to become the norm across Auckland, the investment sales team is seeing strong activity across the board.
“It’s been a record year for our offices on the North Shore in Takapuna, Central Auckland in the CBD, South Auckland in East Tamaki, and West Auckland in Westgate.”
Some notable sales highlights include:
North:
• 1/3 and 2/3 Cowley Pl, Albany: These two industrial properties sold separately at auction for sharp yields below 4 per cent. Unit 1 sold for $2.55m at a yield of 3.45 per cent, while Unit 2 sold for $2.69m, at a yield of 3.67 per cent. The deals were brokered by Janet Marshall, Ryan de Zwart and Matt Prentice of Colliers North Shore.
• 229 Dairy Flat Hwy, Albany: A large North Shore investment on a
1.04ha site with A-grade tenants including Massey University, Quest and Auckland Council was sold for $33m in October, representing a yield of
5.78 per cent. This was one of the largest sales on the North Shore in 2019 and was brokered by Shoneet Chand with Prentice.
Central:
• 21-23 Nixon St, Grey Lynn: This add-value office building ended in a multi-offer situation and sold in October for $3.825m. The deal at a 5.44 per cent yield was brokered by Jonathan Lynch and Hamish Paterson.
• 5 Nelson St, Auckland Central: An add-value standalone office property on Nelson St, the property lends itself to a future residential conversion or office upgrades with levels added. The property was unconditionally sold off-market for $9.5m, at a 5 per cent yield, in a deal brokered by Adam White and Blair Peterken. West:
• 15-19 Fernhill Dr, Westgate: A freehold retail development with adjoining childcare centre was sold to a private investor for $9.916m. The deal was brokered by West Auckland Director Josh Coburn, with Prentice and Chand.
• 141 Central Park Dr, Henderson: A freehold site occupied by Carters Building Supplies was sold for $11.65m at a yield of 4.77 per cent. The deal was brokered by Coburn, Prentice and Chand.
Fraser says he expects the strong activity across Auckland to continue. “We can expect much of the same over the next 12 months.”