The net rental yields got down to just over three per cent at Bayleys' latest commercial property auction.
There was a good turnout of investors for the auction, held at the company's head office auction room at Auckland's Viaduct Harbour.
Originally nine properties were scheduled for auction but two had their auction dates postponed. Of the remaining seven, four were sold under the hammer and three were passed in for sale by negotiation.
The cheapest sale of the day was a convenience store on a corner site in Onehunga (pictured), that went for $550,000, only slightly more than half the price of an average residential property in Auckland.
It was providing rental income of $17,565 (plus GST) giving its new owner a net rental yield of 3.19%, which is less than you'd get from a 12 month term deposit at a bank.
There were multiple bidders for all of the other properties that sold, with the net rental yields ranging from 4.25% for a light industrial/retail premises at Burswood in East Auckland, to 5.39% for a bulk retail premises in New Lynn.
Details of these and other commercial property sales from around the country are available on our Commercial Property Sales page.
You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.