83pc clearance rate for Burgess Rawson’s June auction in Sydney

Burgess Rawson is reporting a clearance rate of 83.33 per cent for its latest Sydney portfolio auction, with 15 properties selling on the day resulting in a total auction value of $44.95 million.

A standout result was an apartment hotel in Townsville which sold for $9.6 million on an 8.85 per cent yield.

Other regional outlets sold included a Red Rooster outlet in Griffith, a cafe in Bowral and a Home Timber and Hardware store in Yamba.

Closer to Sydney, a NSW government leased building with development potential in Campbelltown fetched $4.8 million on a yield of 2.3 per cent.

Burgess Rawson agents Darren Beehag and Simon Staddon told Fairfax Media that the the yields achieved were a reflection of buyer intensity, with  four properties selling under 6 per cent and two under 5 per cent

“Rates could go further down and will be lower for longer, which is putting pressure on yields,” Mr Beehag said.

Mr Staddon said: “People aren’t chasing location, but the profile of the tenant and length of lease. The want blue-chip tenants which provide security of income.”

Auction results 

Campbelltown NSW

Sold: $4,800,000

Yield: 2.30 per cent

The government-leased warehouse in Campbelltown sold on a sub 3 per cent yield. Photo: Burgess Rawson

Nowra NSW

Sold: $1,500,000

Yield: 4.40 per cent

Government-leased industrial building at 3 Cumberland Avenue, Nowra. Photo: Burgess Rawson

Mudgee NSW

Sold: $2,760,000

Yield: 5.06 per cent

The Service NSW building at 65-67 Church Street, Mudgee. Photo: Burgess Rawson

Cooma NSW

Sold: $1,660,000

Yield: 5.50 per cent

Service NSW property at 125 Sharp Street, Cooma. Photo: Burgess Rawson

Griffith NSW

Sold:  $1,600,000

Yield: 5.60 per cent

Griffith Red Rooster at 25-27 Banna Avenue. Photo: Burgess Rawson

Orange NSW

Sold: $1,290,000

Yield: 5.70 per cent

Zambrero cafe at 172-174 Summer Street in Orange. Photo: Burgess Rawson

Bega NSW

Sold: $5,250,000

Yield: 6.28 per cent

Coles Express service station at
2-6 Swan Street, Bega. Photo: Burgess Rawson

Forbes NSW

Sold: $1,115,000

Yield: 6.56 per cent

Forbes Rabo Bank building at 16 Sherriff Street. Photo: Burgess Rawson

Kearneys Spring Queensland

Sold: $1,525,000

Yield: 6.70 per cent

Carbal Medical Centre at 18 Hanna Court, Kearneys Spring. Photo: Burgess Rawson

Bowral NSW

Sold: $1,740,000

Yield: 6.74 per cent

Part of the Bowral cafe building 30 Wingecarribbee Street. Photo: Burgess Rawson

Narromine NSW

Sold: $4,175,000

Yield: 7.70 per cent

Narromine Coles at 76 Dandaloo Street. Photo: Burgess Rawson

Yamba NSW

Sold: $1,955,000

Yield: 7.90 per cent

Yamba Home Timber and Hardware at 20 Treelands Drive. Photo: Burgess Rawson

Eagle Farm Queensland

Sold: Price withheld

The Inertek building at 231 Holt Street in Eagle Farm. Photo: Burgess Rawson

Townsville Queensland

Sold $9,600,000

Yield: 8.85 per cent

Townsville Central Hotel at 12-18 Palmer Street. Photo: Burgess Rawson

Cooma NSW

Sold: $280,000

Yield: NA

The former Cooma RTA building at 93 Massie Street. Photo: Burgess Rawson