Clovelly property sells on crazy 0.5% yield

This Clovelly property might not be much to look at, but it sold on one of the tightest yields of any commercial property in Australia this year.

Why?

A lack of opportunity in the tightly held beachside hotspot, agents say, following a commercial property shortage over the last 12 months.

Sydney pub: Clovelly Hotel joins sales rush

The property at 338-342 Clovelly Rd, consisting of two retail shops and two apartments, sold for $2.92 million after receiving 150 enquiries within the first few weeks of being listed.

The Clovelly property features two shops and two apartments.

High net worth owner-occupiers, private investors, syndicators, value-add specialists and developers were among those to make a play for the 455sqm property, which lies just 200m from Clovelly Beach and sits opposite the Clovelly Hotel, which was put on the market in late October.

Originally scheduled for auction, the property sold beforehand to a private investor and owner-occupier through Colliers International’s Matt Pontey and Miron Solomons.

Pointy says the market is craving assets in Sydney’s east.

The property lies 200m from Clovelly Beach.

“This was a highly sought-after property and the sale price and level of enquiry demonstrates the market’s appetite for quality eastern suburbs freehold investments,” he says.

The Clovelly building has the potential for a third apartment on-site, and draws a solid holding income from the two retail tenancies.