Mildura commercial property market softening under flood of listings: Herron Todd White

In Mildura, 17 commercial properties have been marketed by receivers of two portfolios, with eight sold, say valuers Herron Todd White.

‘’Placing so many properties on the market at once has had a flooding impact, with five of the eight showing softer levels than had previously occurred.’’

The valuer says yields for commercial property may have softened by up to 1% over recent times as a result of this oversupply.

One receiver’s sale of seven old style compact shops in a favoured retail location showed a passing yield of 8.5%, while an adjoining block of three shops showed a freehold passing yield of 11.5% – an abnormal variance - and influenced by only one tender being received for this second property, Herron Todd White says.

‘’The marketing of one of Mildura’s prime corner retail buildings, adjoining the entrance to the Langtree Mall, has been an interesting test of investor sentiment.

‘’The two storey building is fully let with a passing net income of $252,000 per annum and an asking price of $3.1 million.

‘’The listing of this prime building has been a good barometer of investor enthusiasm for prime location and secure yields, however, while attracting interest, it has not yet been contracted.’’