Auctions worth $29m show investment shift
The sales were included in Colliers International's winter 2013 national auction portfolio and covered eight assets in Victoria and NSW.
The national director of investment services for Colliers International, Matt Meynell, said low interest rates and volatility on the sharemarket were driving an increase in confidence in property.
"Self-managed super funds and mum and dad investors are chasing an alternate investment strategy to what proved to be so popular during the GFC - the risk-averse fixed-term deposit," Mr Meynell said.
"A current six month term deposit is now providing a 3.6 per cent return on investment ... the security and increasing returns of the old fashioned bricks and mortar are back on the top of investors' wish lists."
Of the assets sold, a mixed-use commercial and retail site, of 2466 square metres, in Wollongong sold for $4.57 million by Colliers International's Viktor Desovski and Marcelo Ramirez.
A 3000-square-metre site at 6 Lancaster Street, Ingleburn, marketed by Harry Bui and Fab Dalfonso, was sold under the hammer for $3.15 million.
Mr Meynell said Victorian properties ranged from a city hair salon and retail properties in the Docklands precinct, to office-warehouses in the north.
Frequently Asked Questions about this Article…
More than $29 million was generated from the auction of 15 commercial and industrial assets in the past month. Those sales were included in Colliers International’s winter 2013 national auction portfolio and covered eight assets in Victoria and New South Wales.
Buyers included a mix of self-managed super funds (SMSFs), mum-and-dad investors and smaller institutional buyers — indicating growing interest from everyday investors and smaller institutions in commercial property.
Colliers’ national director of investment services, Matt Meynell, says low interest rates and volatility on the sharemarket have pushed investors toward property. Many SMSFs and retail investors are seeking an alternative to low-yield fixed-term deposits and the ups-and-downs of shares.
According to the article, a current six-month term deposit was providing about a 3.6% return. Colliers notes that the perceived security and potential returns from physical property have become more attractive on many investors’ wish lists as an alternative to term deposits.
A mixed-use commercial and retail site of 2,466 square metres in Wollongong sold for $4.57 million (handled by Viktor Desovski and Marcelo Ramirez). A 3,000-square-metre site at 6 Lancaster Street, Ingleburn, marketed by Harry Bui and Fab Dalfonso, sold under the hammer for $3.15 million.
The Victorian properties in the portfolio ranged from a city hair salon and retail properties in the Docklands precinct to office-warehouses in the northern suburbs, showing a variety of commercial asset types on offer.
Yes — the auction results and Colliers’ commentary point to an investment shift where everyday investors, including SMSFs and smaller institutions, are increasingly favoring commercial property as an alternative to low-yield term deposits and a volatile sharemarket.
The key takeaway is that lower interest rates and sharemarket volatility have helped renew interest in commercial property among smaller investors and SMSFs. The auctions show demand for a range of assets and suggest property is again being considered for security and potential returns — but individual circumstances and goals will determine whether this shift is right for you.
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