Glitzy Adelaide ‘man cave’ the nation’s most-viewed property
Investors are zeroing in on industrial properties and sites with development potential in increasing numbers as the search for value in Australia’s commercial property market continues.
Industrial and warehouse assets were the most searched-for among each state’s top 10 most-viewed commercial properties last week, with land/development sites close behind.
In the traditionally office-focused ACT, seven of the top 10 properties were industrial, while land/development listings made up 13 of the 80 properties nationally, up from six the previous week.
A large proportion of the development sites are existing properties with significant potential for redevelopment, which REA Group chief economist Nerida Conisbee says is a good sign for the market.
“That’s a positive sign,” Conisbee says.
“The fact that people feel that something with development potential is worth buying, it shows that people are feeling a bit more positive about things moving forward.”
Conisbee says other buyers are beginning to seek out properties that may have been placed on the market due to challenges associated with coronavirus.
“We’re beginning to see a bit of an uptick in distressed listings for development sites, so many people are starting to feel there’s value in that section of the market,” she says.
Despite the demand for development opportunities , it was a luxuriously appointed warehouse in the Adelaide CBD that stole the show among this week’s most-viewed commercial listings.
Here are the properties that rose to the top in your home state last week.
SA – ‘MAN CAVE’ GONE IN FOUR DAYS
Not only was this Adelaide warehouse space – decked out as a luxury ‘man cave’ – the most popular property in the country last week, it also lasted less than four days on the market.
The brick warehouse had a price tag of more than $1 million and was sold for well above its reserve on Friday, after only being listed on Monday night.
A local development firm paid top dollar for the 368sqm space and plans to use it as an office.
VIC – DEVELOPERS MOVE IN ON POTENTIAL STUDENT DIGS
21-23 Anthony Street, Melbourne
The property at 21-23 Anthony St is slated to become student accommodation.
While this Melbourne CBD building has lived a prosperous life as a six-apartment complex with rooftop terrace and garaging for five cars, it’s its potential as a student accommodation project that has driven it to the top of Victoria’s listings on Realcommercial.
The property comes with permit approval for an 11-storey student accommodation development with 76 beds, as well as the potential to convert the site to offices or even a hotel.
Just around the corner from the Queen Victoria Market, it’s no surprise that buyers are already circling ahead of an expressions of interest campaign.
NSW – SECRET BAR WITH BONUS APARTMENT
49-51 Goold Street, Chippendale
Hidden behind a huge wooden door, a Chippendale building housing the Saga Bar is on the market.
Renewed interest in this secret Chippendale bar has seen it jump back to number one for search activity amongst NSW properties on Realcommercial.
The cool nightspot is notable for its hand-carved door, exotic decor and the added bonus of a two-bedroom apartment with a bird aviary.
The 164sqm site has a $5.9 million price guide and has received significant interest since being listed some weeks ago, yet remains available for sale.
“I think with lockdowns starting to ease up, people are feeling a bit more confident about properties like this,” Conisbee says.
QLD – MOVE IN OR MOVE UP AT BULKY GOODS SITE
58 Abbotsford Road, Bowen Hills
The Bowel Hills bulky goods outlet.
Recently refurbished and ready to move into, this Bowen Hills showroom or bulky goods outlet has ‘development potential’ as an added carrot.
Racing to the top of Queensland’s listing ladder, the property occupies a 1171sqm land parcel with 882sqm of warehouse and office space, but also sits within a development precinct with a precedent for 30-storey buildings.
Only 2.5km from the CBD and offered with vacant possession, the property presents a myriad of options for the purchaser.
TAS – SUB-$1M PRICE TAG FOR FUTURE WAREHOUSE
Units 1-4, 6 Cessna Way, Cambridge
The four warehouse spaces will be available in early 2021.
The push towards industrial assets is in full swing in Tasmania, where the top two properties both fall into that asset class.
And it’s the chance to invest in a Hobart off-the-plan development a year ahead of its completion that’s got the most buyers excited.
The property at Cambridge, north-west of Hobart’s airport, features four 420sqm warehouses that include a a showroom, lunchroom, upstairs mezzanine office area, up to six car spaces, a powered roller door and the flexibility for input on the fitout during construction.
The units are priced at $980,000 excluding GST.
WA – RACE COULD BE OVER FOR SUBIACO DENTIST
This Subiaco property, leased as a dental clinic, is under contract.
The fact that this WA dental clinic has been under contract for two weeks hasn’t deterred potential buyers, with the Subiaco property topping the state’s Realcommercial rankings for the second week in a row.
Strongly leased to industry heavyweight Bupa Dental, the stunning corner property sits on 973sqm of land and is leased at $155,000 per annum on a 10-year agreement with two five year options.
ACT – RARE MAJOR INDUSTRIAL OFFERING
The Hume industrial property was the ACT’s most-viewed listing.
Office spaces have dominated ACT’s commercial property scene in recent weeks, but last week saw a changing of the guard.
Seven of the state’s top 10 commercial properties were industrial/warehouse facilities, led by this one at Hume, which had double the views of any other listing.
With larger sites in Canberra in short supply and rarely on the market, the 10,170sqm site has huge appeal and comes with a strong income, courtesy of a seven-year lease with a five-year option.
The property is priced at $4.7 million and is to be sold by private treaty.
NT – INVESTORS JUMP AT 7.7% OFFICE RETURN
The chance to grab a 7.7% investment yield is drawing investors in to a large office suite in Darwin.
With a longstanding tenant, a five-year lease with two five-year options, an annual income of $170,000 and a price tag of $2.2 million, the property represents a strong opportunity in a major office complex.
Included in the deal is 588sqm, which includes six car spaces, on the most prominent corner in Parap, north of the Darwin CBD.
