Bayleys achieved a 69% clearance rate at their latest Auckland commercial property auction as investors chased the substantially higher yields commercial properties provide compared to residential properties.
Retail properties continue to prove especially popular and several smaller retail units in Warkworth sold at prices that ranged from $475,000 to $1.55m, meaning the cheaper ones were considerably more affordable than an an average residential property in Auckland.
The returns on commercial properties were much better too, because the tenants usually pay most of the outgoings such as rates and insurance and many maintenance costs.
This meant the Warkworth retail units provided their new owners with net yields of 5.46% to 6.48%.
However investors were paying a premium for properties with any development potential, such as an under utilised light industrial building in Kingsland which went for $2.925 million, providing a net yield of just 2.37%.
You can see the full results of Bayleys’ latest commercial property auction, plus details of recent commercial property sales by Colliers and Barfoot & Thompson, on our Auction/Sales Results page.
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