High clearance rate from commercial portfolio auction
More than two thirds of the offerings put up for sale at Bayleys’ latest Total Property auction in Auckland have sold with further sales expected.
A total of 11 out of 16 mostly smaller commercial and industrial offerings sold under the hammer or shortly after the auction.
“This in a line with an overall clearance rate of around 70 per cent for commercial properties up for auction in Auckland so far this year,” says Bayleys senior commercial auctioneer Richard Valintine.
Further south, Bayleys had another 100 per cent clearance at its Wellington Total Property auction, taking the number of properties sold by auction over the past 12 months in
“Fewer good quality investment properties has been a handbrake on the Auckland market.”
the capital to 47 out of 48 offerings. “This shows that auctions still provide an effective method of sale in what is generally accepted to be a more challenging market than last year, particularly in Auckland,” says Valintine.
“Fewer good quality investment properties for auction has been a handbrake on the Auckland market this year.”
Two of the Auckland properties had a declared reserve price after their owners accepted pre-auction offers which then became the starting point for bidding.
Bidding began at $2.2m for a 340sq m two-level building on a 1006sq m site zoned Neighbourhood Centre at 14 Papakura-Clevedon Rd in Clevedon
Village. Other bidders then joined in the action and a series of mostly $5000 increases pushed the sale price up a further $120,000 before the hammer finally came down at $2.32m.
The property, which has a liquor store and a dairy with upstairs accommodation, was sold at a 5.33 per cent yield by Tony Chaudhary and Janak Darji of Bayleys South Auckland.
Also selling at its declared reserve of $550,000, after the auction was brought forward, was a vacant 108m warehouse unit plus three car parks in the Rosebank Rd industrial precinct at 3A Fremlin Pl, Avondale. It was marketed by Mark Preston and Rick Kermode.
Other properties to sell were:
199 Rodney St, Wellsford: Singlelevel retail premises on a 233sq m site Town Centre zoned site on State Highway 1 sold for $422,500 at a 7.57% yield by Janak Darji, Tony Chaudhary and Henry Napier. New six-year lease to NZ Post and Kiwibank.
Unit J, 1 Polarity Rise, Silverdale:
65sq m retail unit sold for $485,000 at a 5.53 per cent yield by Ranjan Unka, Steven Liu and Eddie Zhong. Leased to the Lavender Lounge for six years from October 2018.
Unit 14, 25 Corban Ave, Albany:
296sq m refurbished licensed restaurant in The Foundation retail complex sold for $2.1m at a 5.71 per cent yield by Millie Liang, Eddie Zhong,
Terry Kim and Tony Chaudhary. There is a six-year lease from April
2019 plus a six-year right of renewal to a Chinese restaurant.
Unit 1F, 192 Universal Dr, Henderson: A 472sq m unit in Lincoln North Shopping Centre sold for $1.82m at a
7.7 pr cent yield by Nicolas Ching and Jarrod Qin. There is an eight-year lease from June 2019 to Snap Fitness, plus two six-year rights of renewal.
92 Manukau Rd, Epsom: A 390sq m Mixed Use-zoned site with consent for a five-storey building with commercial activities on the ground floor and 11 apartments above sold for $1.45m. The site was sold with vacant possession by Oscar Kuang, James Chan and Owen Ding.