'As is where is' commercial properties still keenly sought
The 'as is where is' commercial property market still has plenty of steam in it, judging by the results of the latest Colliers International auction in Christchurch.
Three 'as is where is' buildings were sold under the hammer in lively bidding at the auction, with six of the seven properties selling on the day for a total of $4.575 million.
A complex of 11 townhouses in Phillipstown was keenly contested, fetching $1.750 million. Investment Sales specialist Courtney Doig says there were approximately 15 bidders in the room.
The successful buyer was one of the under-bidders for a previous such complex in Beveridge Street that sold at a recent Colliers auction.
“The main interest in this Phillipstown property came from contractors with resourcefulness to repair and people seeking cashflow," says.
"There’s still a lot of unsatisfied demand for this sector of the market where people see the opportunity to add value. As body corporates finally resolve their claims with insurers, we’ll continue to see these types of multi-unit dwellings coming to the market.”
Two city fringe industrial 'as is where is' properties attracted similarly strong interest with 31 King Edward Terrace in Woolston selling for $1.060 million and 63 Buchan Street netting $280,000.
Industrial broker Christian Kellar says interest remains high in the city fringe 'as is where is' market.
“Enquiry is still strong for properties in this sector, particularly among owner occupiers and savvy investors looking for a value add opportunity," he says.
"We believe there are still plenty of 'as is' opportunities - we’re getting a lot of demand and vendors are getting fantastic prices.”
Other sales a rural and lifestyle block in Prebbleton, which sold for $740,00 and an entry level investment at 411 Tuam Street went for $535,000.
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