Strong commercial property prices are pushing the net yields on some properties down below 3%.
A string of commercial sales just reported by Bayleys Real Estate included a property at 692 Dominion Road in Auckland's popular restaurant strip at Balmoral, which was operated as a Thai restaurant (pictured above).
The building covered 238 square metres but sat on a 1313 square metre site, which would have appealed to a wide range of buyers with an eye to future development options.
It sold for $3.05 million, providing the new owner with a net yield of 2.39%.
Also yielding below 3% was a two level character house converted to offices at 481 Parnell Rd which Bayleys sold for $2.85 million, giving a net yield of 2.81%.
Colliers also reported a sale with a net yield below 3% in its latest results, with a property 350-352 Manukau Road at Epsom in Auckland which was occupied by a Burger King restaurant and a service station, selling for $15.15 million providing a net yield of 2.79%.
However those were the exceptions, with sales of several other properties from around the country providing their new owners with net rental yields of 5% or more.
Full details and photographs of the latest commercial sales by both Bayleys and Colliers are available on our Commercial Property Sales page.
On the residential property front auction rooms remain busy, with interest.co.nz monitoring 288 auctions in the week of 13-19 February and sales achieved on three quarters (76%) of those.
However results have been more mixed at the Auckland apartment auctions, with only one of the five properties offered selling under the hammer at City Sales' latest apartment auction.
At Ray White City Apartments, three of the seven apartments offered sold under the hammer, while CBD car parks proved popular.
Two car parks on different levels of the Heritage Farmers parking building on Hobson Street in Auckland's CBD both sold under the hammer at Ray White's latest auction.
One on level two sold for $80,000, while another on the rooftop level (uncovered) sold for $68,250.
Details of all the properties offered at the auctions monitored by interest.co.nz and the results achieved are available on our Residential Auction Results page.
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