Owner occupier demand continued to drive the market in the sub $1m bracket as stock supply for functional properties tightens further.
Chris Massie & Ashley Rees of Ray White Commercial North Coast Central has negotiated the sale of the 180m2 tilt panel unit at 2/5 Lear Jet drive for $350,000. The sale represents a rate of $1,944m2 and has provided a much needed boost to the confidence of valuers in the Caboolture market.
The premium sale price was driven by function as the owner-occupier had specific requirements for vehicle access that could not be met by other small unit complexes in the region.
Supply constraints are becoming more of an issue as there have been almost no new speculative buildings constructed in the area since 2009. The result has been a gradual increase in achievable rents for quality vacant units.
In addition to vacant possession rates increasing, there has also been a noticeable firming of investment yields in the sub-$5 million price bracket. There are currently three properties under contract to investors that were not formally on the market, with yields being achieved as low as 7.3%.
The strength of commercial property returns when compared to other investment forms over recent times ensures activity in the tenanted market will continue.
|Strong owner-occupier demand
|Stock squeeze in sub $1m bracket
|Function is key