Demand drives CBD-like yields in North Balwyn

Demand drives CBD-like yields in North Balwyn
Demand drives CBD-like yields in North Balwyn

A local investor/developer and a tenant have outbid rivals in two hotly-contested North Balwyn auctions on CBD-like yields of just 1.49 and 2.89%, surpassing vendor expectations by a combined $500,000.

The properties at 339 and 341 BALWYN Road were auctioned in front of an 80 strong crowd with six bidders driving the price on 341 to $935,000 and the five bidders for 339 pushing the price to $790,000.

The purchasers, according to selling agents, Teska Carson’s George Takis and Michael Taylor, were an investor/developer who purchased 339 and the existing tenant who purchased 341.

Mr Takis said the 339 Balwyn Road property -  a single level brick building with a right of way at the rear - offered room at the rear for an extension or redevelopment of the site. He said the veterinary surgeon tenant of the two-storey shop and dwelling next door at 341 BALWYN Rd had recently undertaken a major renovation of the building.

Mr Taylor said pre-auction enquiry had been a good indicator of what to expect on auction day.

"These properties both offered very secure tenancy profiles – one who had recently undertaken a major renovation and another who had been at the premises for 19 years – and positions within a tightly held precinct with little or no vacancy as well as potential development upside.

"Investment properties in the circa $1 million and under price range have and will continue to entice strong enquiry especially while interest rates remain so low and while commercial property offers such attractive yields,’’ Mr Taylor said.

The vendor was a local private investor. 

Tags: 
Comercial Sale

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