Noosa office suite sells for $230,000 to holidaying expat investor on 9% yield

An expatriate investor from Japan visiting friends on the Sunshine Coast has bought a 63-square-metre office suite in a commercial complex at Noosa Heads for $230,000 plus GST on an attractive gross yield of around 9%.

The sale of suite 7 at Noosa Central complex on Bottlebrush Avenue, Noosa Heads, which is leased for two years to Body Corporate Services, was negotiated by David Brinkley, along with Paul Forrest and Paul Butler of Ray White Commercial Noosa.

The current annual rental on the office is $20,812.

Brinkley says the commercial property market has  picked up "a little bit" in last 12 months, with "lots of investors sniffing around that at the moment".

Ray White Commercial Noosa also negotiated the sale of suite 13 in the same complex, measuring 67 square metres and under lease for another 12 months.

It was sold for $220,000 to local professional Greg Martoo, who had been seeking a small office in the Noosa area.

The Noosa Central complex is located directly behind the Noosa Junction CBD shopping precinct.

Office space in the complex is currently being advertised from $250 per square metre exclusive of GST and outgoings.

“Both of these suites attracted strong enquiry levels from investors as they were tenanted and offering a yield of around 9%,” says Brinkley.

“We are seeing an increase in enquiry levels from investors who will look seriously at commercial and retail property as long as it has an 8% or higher return and a reasonably long lease in place.”

Both office suites were offered for sale by locally based investors.

In August, Property Observer reported on signs of a turnaround in the Noosa commercial property market following a number of years of struggle.

Paul Butler said at the time he was seeing an increase in confidence from buyers for properties with good lease covenants.

“Super funds are becoming particularly active as buyers look for stable returns outside of the stock market,” he said.