Buyers have been undeterred by Auckland’s return to Level 3 restrictions, with three commercial properties selling under the hammer in Colliers International’s auction room in the last week.
Two properties in Onehunga sold on Wednesday in a virtual auction, while a property in Mt Wellington sold the week prior – less than an hour before the lockdown came into force.
“While Auckland’s return to Level 3 has brought some uncertainty, these auction results show there’s still strong investor appetite for quality commercial property offerings.
“Savvy investors are clearly looking beyond the short term and are banking on long-term gains and underlying land values.
“Property is often seen as a safe haven in times of economic disruption, and the current situation is no different, as these auction results attest.”
A mixed-use character property at 231-233 Onehunga Mall was the first of two properties to sell on Wednesday in Colliers’ virtual auction room.
It sold for $930,000, at a yield of 6.57 per cent, after attracting 14 bids.
Located on a 245sq m freehold site on Onehunga’s main retail strip, the property comprises two ground floor retail units, occupied by a sushi shop and a fish and chip shop, plus a two-bedroom flat upstairs and storage basement below.
The second sale under the hammer on Wednesday was a premium modern industrial property at 28-30 Miami Parade, Onehunga.
It sold for $3.2 million with vacant possession, plus short-term holding income for the n ew owner.
Completed in 2016, the property provides 1,195sq m of functional space including a high-stud warehouse, large canopy, secure yard, two-level office and a well-presented executive suite on a 1,113sq m freehold site.
Bidders also kept active in the auction room ahead of the current lockdown, with a Mt Wellington industrial property at 178 Marua Road selling under the hammer for $3,335,000.
The auction was held at 11am on Wednesday 12 August – an hour before Auckland’s Level 3 restrictions came into force.
Bakshi, who brokered the sale with Cockram and West, says it was an exceptional result – especially given the timing.
“The property sold significantly above the reserve price after receiving bids from seven parties, including four bidders in the room and three on the telephone,” says Bakshi.
“The eventual purchaser was locally based but bid over the phone – which shows the usefulness of our ‘hybrid’ auction model, allowing bidders to participate in the room or online.”
The Colliers auction room also had a successful run in mid-July, with four properties selling under the hammer and a fifth selling prior.
The sales included:
- 437-441 Great North Road, Henderson, for $6.15 million at a yield of 5.04 per cent. The sale was brokered by West Auckland Director Josh Coburn, Industrial Director Josh Franklin and Industrial Broker Dhiru Patel;
- 11B Woodruffe Avenue, Henderson, for $860,000 at a yield of 6.40 per cent. The sale was brokered by Patel and Coburn with Industrial Director Andrew Hooper and West Auckland Broker Caroline Cornish;
- 106F Bush Road , North Harbour, for $650,000 at a yield of 5.72 per cent. The sale was brokered by North Shore Director and Commercial Manager Janet Marshall with North Shore Broker Kerry Cook;
- Unit B4, 210 Dairy Flat Highway, Albany, for $555,000, brokered by Marshall and North Shore Broker Mike Ryan, and;
- 135 Wairau Road, Wairau Valley, sold prior to auction for $2.25 million. The sale was brokered by North Shore Directors Matt Prentice, Shoneet Chand and Jimmy O'Brien.
Fraser says auctions are useful in times of uncertainty because they provide a transparent way for both vendors and purchasers to ascertain what market values are.
“Our market-leading hybrid auction capability, using the AuctionsLive platform, allows us to deliver confidence for our vendors and bidders.
“The strategy is clearly producing results, as our auctions over the last two months have attested.”