More commercial properties selling under the hammer in Christchurch

Investors vie for high calibre properties and ‘value add’

 

 

Auctions of commercial properties in Christchurch are reaping substantial rewards for vendors and are increasingly sought by investors.

 

In the year to August 31, Colliers International Christchurch has notched a clearance rate of 90% on properties it has taken to auction that have sold on the day or shortly afterwards as a result of the process. This compares with 64% for the 2015 calendar year. Across Colliers New Zealand, the clearance rate for 2016 currently stands at 72%, steady on 71% last year.  

Sam Staite, director of industrial at Colliers International in Christchurch, says the investment market is still “hot” and auctions are proving a popular method of selling.

 

“Purchasers want to know that they can buy on the day and like the transparency and certainty of purchasing at auction. This applies to both industrial and other investment properties.”

In the industrial sector, Staite cites two recent industrial sales – a warehouse and office at 40 Cass Street in Sydenham that fetched $930,000 and another at 49 Treffers Road in Wigram that sold via the auction process for $2.351 million, representing yields of 6.18% and 6.64% respectively.

“We auctioned both these properties and had an overwhelming response. What the auction process did was reveal how many investors were looking for high calibre industrial investments that ticked the fundamentals.”

Staite says tenanted industrial properties are highly sought as they are generally very straightforward investments that provide a good passive income.

“They suit a bottom drawer style investor or someone new to the market - as long as the fundamentals of the property are right.”

John Bowring, Colliers International auctioneer, believes auction is the best way to sell commercial property in the current market because it puts a set sale date around that property.

“Commercial real estate auctions continue to grow throughout New Zealand as vendors realise that getting a fair market value for their property is what it's all about. Buyers, on the other hand, like to be able to see their competition and enjoy the transparency that auctions offer.

“A great auction is made by getting a lot of buyers in the room and in the current market we’re getting a lot of buyers coming to properties.”

 

For further information, please contact:

Sam Staite, 03 365 7887, 021 738 245, sam.staite@colliers.com

 

 

 

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