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Demand for commercial property pushes auctions deep into December

Demand for commercial property pushes auctions deep into December

A warehouse in Sydney’s south west has sold for more than $1.8 million, in what is one of the last commercial auctions of the year.

Several commercial auctions have taken place in Sydney this week, traditionally a time of year when agents focus on administrative work, or are on their summer holidays. They say demand for properties has pushed auctions much later this year.

In Ingleburn, a freestanding warehouse at 4 Heald Road, with office space and a storage room, sold for $1.83 million, to two buyers who wanted to remain anonymous.

It is understood the pair is planning to operate a skip hire business from the warehouse, which had formerly housed a crane hire operation.

Demand for commercial property pushes auctions deep into December

The Ingleburn warehouse had housed a crane hire business. Photo: Supplied

Director of Colliers International Industrial Sydney South West Adrian Balderston said that the result was indicative of demand in the sub-$5 million industrial market.

“It’s being driven by low interest rates and owner occupiers wanting to buy in their super [funds],” Mr Balderston said.

“The demand is amazing – even better than it was in 2007 (before the Global Financial Crisis).”

The price reflects a figure of almost $2075 a square metre – a figure Mr Balderston said was likely a “record price”  for the age of the building – constructed in the mid 1990s.

“It was above what I was expecting,” Mr Balderston said.

The decision to hold the auction so close to Christmas – traditionally most commercial auctions finish up in the first two weeks of December – was, Mr Balderston said, because the owner had been keen to capitalise on the interest generated by the recent sale of another Ingleburn warehouse, at nearby 27 Liverpool Street for $1.98 million – which sold for $465,000 more than its reserve.

Demand for commercial property pushes auctions deep into December

A two-storey commercial terrace in the Sydney CBD sold for more than $1.3 million at auction on Tuesday. Photo: Supplied

“The owners wanted to get it sold and settled as soon as possible, because we just had another auction for a similar property around the corner and we had a good database of buyers,” Mr Balderston said.

He said that they had received 35 inquiries during the course of the campaign.

Meanwhile in Sydney CBD, a terrace office at 37 Shelley Street sold for $1,351,000 – $51,000 above reserve.

According to listing agent Tim Noonan, of Noonan Property, the building sold to an owner who intends to occupy the property.

(Source: commercialrealestate.com.au)