Investors feeding frenzy
SOUTHERN buyers are snapping up good quality investment properties in Townsville chasing the better yields that can be achieved in strong regional centres, says Ray White.
Ray White Commercial Townsville managing director Adrian Pascoe said the buying frenzy was so fierce stock was running out.
“We are seeing a lack of investment stock. It’s getting snapped up very quickly. We can’t keep up with demand,” Mr Pascoe said.
Ray White has pulled off a string of investment property deals in recent months and still has some irons in the fire, including a big investment portfolio in Currajong with net annual income of more than $1m.
The industrial holdings, comprising two portfolios and more than 13,000sq m of units in Keane and Hugh streets, are being marketed for a total of more than $15m.
One recent deal clinched by Ray White was on a premium office facility in 71-77 Patrick St, Aitkenvale.
Held by a local investor since 2005, the property was purpose built for the state government’s department child safety, youth and women.
The complex features a premium office fit-out with security token access throughout, including via a secure undercover car park.
The 900sq m office area includes multiple meeting rooms and big conference room, all with back of house access.
It has 18 enclosed, undercover car parks and a further 13 open car parks on site.
The property was refurbished at a cost of about $80,000 in 2020 and was offered to the market with a new four-year lease and a further two two-year options commencing January 2021.
The property sold to a southern-based investor for $3.43m, showing a yield of about 8.6 per Apart cent.
Mr Pascoe said d they received a good number of 55 5 inquiries despite e the constraints of f Covid-19 restricting interstate travel.
“We are seeing a lot of southern investors being attracted to a stronger yield in the Townsville market looking at getting better quality assets compared with southern markets,” Mr Pascoe said. from the investment market, Mr Pascoe said they were also seeing owner-occupiers coming into the market, seeing an opportunity to secure their own premises using self-managed superannuation fund structures.
But even here certain stock was limited.
“A lot of stock has been taken up in the past 12 months. We are seeing a shortage in the 200-500sq m warehouse facilities,” Mr Pascoe said.