More than 20 properties were successfully sold under the hammer at Colliers Auction Room events during October.
Sixteen of those properties were sold at auction in Auckland and a further seven were sold by Colliers’ franchises including Christchurch, Hawke’s Bay and Hamilton.
In the Auckland auctions, a combination of quality tenanted retail units plus seven commercial office and warehouse investment properties contributed to the very strong clearance rate that generated more than $36 million in sales. The average yield generated in Auckland was 5.4%.
The list of auctions was anchored by six retail properties along Lincoln Road Henderson, Auckland.
The modern units with established tenants fetched between $796,000 and $3,500,000 for a total of $11,416,000 - achieving yields between 4.9% and 5.3%.
Five of the auctioned retail units - located in a complex at 297-307 Lincoln Road - included a childcare centre, Texas Chicken, Mexicali Fresh, Flame Pizza and Mark Anthony Hair Design.
Shoneet Chand, who sold the units with colleagues Peter Kermode and Craig Smith, says the strong tenant covenants made these deals extremely desirable.
“More than one hundred bids were received on some individual auctions in what was an extremely active auction room. The appealing tenancies were complemented by their prime location and detailed design of the overall development making for a secure strong long-term asset.”
The largest auction sale in Auckland during October was $4,500,000 paid for a 305 sqm retail property with three tenancies on a freehold 1,358 sqm site at 423-427 Beach Rd, Mairangi Bay. It was sold by Colliers International brokers Tony Allsop, Euan Stratton, Jimmy O’Brien and Gareth Fraser.
“This was a great opportunity to secure a very desirable piece of the Mairangi Bay Village with a holding income of $48,187 per annum plus GST and plenty of future development potential for both retail and residential purposes – a rarity to come by within such a popular North Shore seaside community,” says Allsop.
Colliers International’s auctioneer, John Bowring, said the results prove that with the market as hot as it is, auctions really are the best option for most vendors.
“The strategy with the majority of our auction listings is to market the property to as wide a group of buyers as possible and then use the most effective media channels to produce a very diverse group at auction on the day.
“I think the only way to generate the prices that are being achieved is by getting a large number of unconditional buyers in the same room at the same time. It really is the best method to value properties in this sort of market.”