Net yields mostly in the 4% to 5% range at Bayleys' latest Auckland commercial property auction; higher in other regions

Net rental yields were mostly under 5% at Bayleys' latest auction of Auckland commercial properties.

There was a good mix of properties on offer and the net yields achieved ranged from 6.11% on a medical clinic in Penrose that fetched $1.065 million, to just 2.66% on a house in Takapuna that had been converted to legal offices..

But most of the properties sold on yields between 4% and 5%, with prices ranging from $1.065 million to $4.04 million.

The yields suggest commercial properties in Auckland can still be purchased for about the same price or less than the average price of a house in the region but the commercial properties are likely to be providing investors with significantly better returns (you can check out our Indicative Residential Rental Yield Indicator here).

Other recent commercial property sales around the country recently concluded by Bayleys include a hair dressing salon in Hawkes Bay which sold for $815,000 providing a net yield of 5.61%,  a large industrial building in New Plymouth which sold for $2.6 million providing its new owners with a net yield of 7.65%, 223 square meters of office space in Mt Maunganui which sold for $2.2 million providing a net yield of 4.49% and a 368 square metre industrial building with eight car parks at Hornby in Christchurch which sold for 6.99% providing a net yield of 6.99%.

See the details of these and other commercial property sales on our Commercial Property Sales page.

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