Buyer flies in from Beijing to swoop on Hampton retail property

A Chinese buyer has flown in from Beijing to buy a Hampton retail asset, paying $3.6 million - $200,000 over reserve – on a tight 3.2% yield.

The 2 Small Street property, comprising a 368 square metre shop on a 438 square site, was sold at a healthy $8219 a square metre land rate.

Just 150 metres from Hampton railway station and within a short distance of Hampton Beach, the highly exposed corner site offered dual access points and on-site parking for five cars. The property was sold fully leased, returning $113,500 per annum net.

CBRE Senior Manager, Rorey James, who sold the property with Jing Jun Heng, Nic Hage and Mark Wizel, said the buyer had pointed to Australian commercial real estate as being a safe haven for investment.

"This is another example of the post June 30 trend showing encouraging signs that Chinese money is beginning to flow again," he said.

"Governments may put hurdles in the way but they cannot stop the almost irresistible perception of safety in Australian property.

“How significant that renewed flow is we will see over coming months, particularly towards the end of the year and into the new year with the conclusion of transactions."

Despite the restrictions on off-shore Chinese investors, CBRE has sold 22 properties worth more than $200 million to Asia-linked buyers since the first week of July.

Heng said the property had attracted a strong field of local, interstate and off-shore purchasers, who were also drawn to the potential development upside of a site within Hampton’s prime retail precinct.

"The property offered encouraging value-add growth prospects in the medium to long term based on surrounding heights being achieved and the flexibility of the underutilised landholding in the best location in Hampton," Heng said.