Prices ranged from $415,000 to $1.945m at Bayleys' latest commercial property auction

Prices ranged from $415,000 to $1.945m at Bayleys' latest commercial property auction
These four industrial units at Otahuhu sold for $1.031 million, giving a net rental yield of 6.28%.

Most of the properties on offer at Bayleys' latest commercial property auction were sold under the hammer, with net rental yields in the 5% to 6% range.

The properties were mostly smaller retail or industrial investments that would appeal to family investors. There was a good spread of locations from the North Shore to South Auckland.

The most affordable sale of the day was a retail unit on Wairau Road on the North Shore that sold for $415,000, providing its new owners with a net yield of 6.02% (prices of commercial properties are plus GST unless otherwise stated. In most cases the tenant, not the landlord, will pay outgoings such as rates and insurance, meaning the rental yield is net).

The most expensive sale of the day was a 627 square metre warehouse/office with 12 car parks at Albany, which was sold vacant for $1.945 million.

Originally 11 properties were to be auctioned but three had their auction dates postponed, and of the eight that proceeded, five were sold under the hammer and one was sold shortly afterwards with the remaining two passed in for sale by negotiation.

Details and selling prices of the properties that sold and other commercial sales, are available on or Commercial Property Sales page.

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75 percent clearance rate on those auctioned. And good prices achieved

Houseworks, that said, now that capital gains and rent increases are evaporating, don't be surprised if similarly attractive yields emerge for residential. Will the relevant sales prices achieved be regarded as good too? It's not hard to imagine changes to student visas combined with Kiwibuild will loosen up the rental market, causing many Landlords to flee the scene and the remaining left to compete for good tenants.

We know that you are hurting retired poppy as interest from the bank which is your only source is slowing drying up. As it happens in the next few days I will be advising my tenants of rent increases and even then at the new rate the rent is less than market. If any decide to leave we can rent out for much more. Sorry to disappoint.

This all looks good for long term impatient commercial investors from the south. What do the other readers think ? Will these low rate of return (high capital cost) spread south to Wellington.