Commercial Research. Auction Insights. January March 2016

Transcription

1 Commercial Research Auction Insights January March 2016

2 This edition of Ray White Commercial Auction Insights showcases the first quarter of auction results for During the three months to March 2016, over $32million has sold across the Ray White Commercial network via Auction campaigns; 23 sales of a possible 29 auctions. Ray White Commercial 1Q 2016 Auction Results Ray White Commercial 1Q 2016 Auctions, Sold by Sold S 79.31% Under the Hammer 52.17% 52.17% $ million, 29 Auctions $32.404million SOLD Total 29 auctions Passed In 20.69% 23 SOLD auctions Prior to auctions Prior to to Auction 47.83% 1Q Q sales 23 passed in 58.82% clearance rate 15 SOLD under the hammer 7 SOLD prior 10 SOLD post auction 23 sales 6 passed in 79.31% clearance rate 12 SOLD under the hammer 11 SOLD prior 0 SOLD post auction Source: Ray White Group

3 Despite some shift in market sentiment this year, the auction clearance rate remained high at 79.31%, a vast improvement from the 1Q 2015 result where despite a larger pool of properties offered to market, only 58.82% sold. To date, all of the sales for 2016 were sold prior to auction or under the hammer, highlighting another strong year of investment demand fuelled by low interest rates. The high number of registered bidders during this quarter (average 6.15 bidders) further emphasises this strong demand for investment stock, with the greatest number of bidders registering for Retail stock. Activity during this period was heavily weighted towards Queensland investments, with strong demand for tenanted small retail and industrial holdings with an average sale price of $1.25million and $650,000 respectively across the country. Ray White Commercial 1Q 2016 Auction, by Location Ray White Commercial 1Q 2016 No. Auctions, by Property type 12 QLD NSW VIC TAS NZ Retail Industrial Office Hotel/Leisure Medical/ Consulting Sold Not Sold 1Q 2015 Average Registered Bidders 4.73 across all auctions 1.50 when sold under the hammer Average Marketing Investment $8,680 1Q 2016 Average Registered Bidders 6.15 across all auctions 6.58 when sold under the hammer Average Marketing Investment $7,560 Source: Ray White Group

4 Ray White Commercial 1Q 2016 Auction Marketing Investment & No. Bidders, by Property type $12, $10, $8, $6, $4, $2, $0.00 RRetail Industrial trial Office Hotel/Leisure Medical/ CConsulting Av. Marketing Av. Bidders B (RHS) HS ) Source: Ray White Group Retail and Office investments remain the most highly sought after, attracting the greatest numbers of registered bidders. Major Transactions Address Asset Class Sale Price Gold Coast Highway, Mermaid Beach, QLD Retail $9,000,000 Under Hammer 21 Nind Street, Southport, QLD Retail $2,200,000 Sold Prior Lots 2 4, 3 Burns Street, Buddina, QLD Retail $1,700,000 Sold Prior 181 Oxford Street, Darlinghurst, NSW Retail $2,255,000 Under Hammer 151 Currunburra, Ashmore, QLD Industrial $2,200,000 Sold Prior Wentworth Avenue, Botany, NSW Industrial $3,100,000 Under Hammer 4 6 Croydon Road, Croydon, Vic Office $1,300,000 Under Hammer Robertson Road, Raceview, QLD Medical/Consulting $820,000 Under Hammer Source: Ray White

5 Gold Coast Highway, Mermaid Beach QLD Commercial Auction A prominently located retail investment opportunity at Mermaid Beach on the Gold Coast located at 211 and 2215 Gold Coast Highway, Mermaid Beach, was sold to a local investor for a yield of approximately 4.67 per cent. The property comprises two buildings on a total land area of approximately 1,555m 2 and includes 14 tenancies generating net rental income of approximately $420,686 per annum. The two commercial buildings offer a combined net lettable area of 817m 2 * with huge redevelopment potential. The marketing campaign for the property attracted 186 enquiries and there were 29 registered bidders with the winning bid coming in at $9million. Michael Willems m.willems@raywhite.com Sales Analysis* Land Area: 1,555m 2 * Enquiries: 186 Registered Bidders: 29 Sale Date: 17th March 2016 Sale Price: $9,000,000 Sale Process* Process: Sold Under Hammer Marketing Time Frame: 4 Weeks Budget: $11, Yield: 4.67% Rate /m 2 : $548 Enquiry Newspaper Mailout Michael Willems Database Ray White Database Internet / Direct Other RW Agents All text and information contained within this Case Study is indicative only. *Approximate

6 4 6 Croydon Road, Croydon Vic Commercial Auction The mutli-tenanted freehold title property of m²* located on a high profile roundabout in central Croydon was sent to Auction in the first quarter of 2016 by exclusive agent, Paul Waterhouse of Ray White Ferntree Gully. The property had a passing net rent of $82,236.36* and fully let net rent of $107,236.00* per annum. These attributes in addition to long term tenants and 12 car spaces attracted 42 inquiries, with 7 registered bidders on Auction day. With energy and spirited bidding, 4 6 Croydon Road was sold under the hammer for $1,300,000 to a private Chinese investor for $150,000 over reserve. Sales Analysis* Sale Method Sold Under the Hammer Total Inspections 13 Contracts Issued 29 Registered Bidders 7 Sale Price $1,300,000 Sale Date 16th March 2016 Marketing Budget $12, Total Enquiry 42 Paul Waterhouse paul.waterhouse@raywhite.com All text and information contained within this Case Study is indicative only. *Approximate

7 1/22 Traders Way, Currumbin QLD Industrial Public Auction Sold under the hammer $20,000 over owner s expectations! What an opportunity! You d better act fast to secure this property in the tightly held commercial precinct of Currumbin. 172m 2* Street frontage with big exposure Loads of on site and street parking Ground floor reception and office Large engineered mezzanine floor Internal amenities Sales Analysis* Land Area 172m 2 * Enquiries 24 Sale Price $292,000 Registered Bidders 10 Sale Process* Process Sold Under the Hammer Marketing budget $4, Offers to Purchase 8 Adam Young a.young@raywhite.com James Young j.young@raywhite.com 3 Enquiry 2 1 Leasing Database Sign Internet 18 All text and information contained within this Case Study is indicative only. *Approximate

8 Research _Know How Vanessa Rader Head of Research Ray White Commercial Level 17, 135 King Street Sydney NSW 2000 T (02) M E vrader@raywhite.com raywhitecommercial.com