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What $1 million buys in commercial property around Australia

February 9, 2018

The shop in Gladstone Park shopping centre, in Victoria, is for sale for $950,000. Photo: Supplied

With news that commercial property is going to be a better bet than houses and apartments in the coming years, we take a look at what investors can buy with $1 million.

The answer looks very different depending where you’re buying and which asset class you’re after.

Home to the country’s most competitive office market, $1 million doesn’t stretch very far in Sydney, says Tom Barnier, director at Cushman & Wakefield.

“Unfortunately 100 square metres is probably as large as you’re going to get for $1 million. It’s most likely going to be strata-ed and if that’s the case you’re probably looking at a small commercial suite or a small retail suite.

“The further west or south you go [from the CBD] you have more of a selection and certainly prices are cheaper but not dramatically. You’d have to go up a good 10 to 15 kilometres out of the CBD and even then you’re not going to be picking up many bargains for $1 million.”

It’s a different story in many other capitals and regional towns, where land for development sites can still be bought for good value.

Executive director at Ray White Queensland Mark Creevey said undeveloped land zoned for subdivision would be a good starting point for investors with $1 million to spend.

“I’d suggest englobo land [ready for subdivision] in any of the major regional centres of Queensland.

“These locations represent excellent counter-cyclical purchasing opportunities at present with the majority of them at traditionally low values and with signs of population growth and improving local economies likely to drive new demand for residential product.”

Mr Creevey said the upcoming Commonwealth Games was shining a spotlight on the Gold Coast, and this had driven up both interest in commercial property and sales prices.

With prices for many commercial properties sky high in many parts of the country we take a look at where you can still find a bargain.


41-43 Corporate Crescent, Garbutt QLD. The warehouse at 41-43 Corporate Crescent, Garbutt, Queensland.

Director of sales and leasing for Ray White Commercial Queensland, Paul Anderson, said: “We see value for small lot industrial buyers, as subdivision opportunities within 15 kilometres of the Brisbane GPO are difficult to attain for developers.

“Essentially supply-and-demand factors will further increase the value of existing lots in the short-to-medium term.”
Ray White is selling a modern 685-square-metre warehouse with an office in Garbutt Corporate Park Industrial Estate, in Townsville.

Located on 1378 square metres of land, the warehouse is on the market for $1,050,000.


62a William Berry Drive, Morayfield QLD 62a William Berry Drive, Morayfield, Queensland.

Buyers looking to purchase land should look as close to future development activity​ as possible, said executive director at Ray White Queensland Tony Williams, who recommends ​”a strategic land purchase in the Brisbane North areas such as Morayfield, Burpengary or Caboolture.”

“Some of the larger development groups have been amalgamating tracts of land and working on solutions to provision of infrastructure. This may provide the opportunity to purchase at ‘rural’ pricing, which may become viable medium-term development land offering strong capital growth,” he said.

A vacant site with a previously approved DA for a fast-food outlet is currently for sale for $1.1 million.

The 1806-square-metre lot at 62a William Berry Drive, Morayfield, Queensland, is close to the town’s shopping centre.


Shop 8/8-34 Gladstone Park Avenue, Gladstone Park VIC. Shop 8/8-34 Gladstone Park Avenue, Gladstone Park, Victoria.

Retail properties were “just about all you can get for $1 million in Melbourne at the moment”, said Burgess Rawson director Jamie Perlinger. And a strong tenant and location were essential to getting value from the investment.

“Look for a long-term tenancy in any investment market to a well-known tenant. You could put a million bucks anywhere and if it’s in the wrong spot you’d ultimately lose.”

Burgess Rawson is selling a 67-square-metre retail space in Gladstone Park Shopping centre, 15 kilometres from Melbourne’s CBD.

Leased until 2020, Shop 8/8-34 Gladstone Park Avenue is on the market for $950,000.


1, 2, 3, 7/225-229 Pacific Highway, North Sydney NSW Offices are for sale at 225-229 Pacific Highway, North Sydney, NSW.

Cushman & Wakefield is selling off-the-plan retail and office spaces in North Sydney, with the smallest spaces in the complex (38 square metres) expected to sell for about $1 million.

The suites are on the ground floor of Greenland Group’s planned 211-apartment ‘Lucent’ development.


Riverview Rise Retreats, Mannum SA Riverview Rise Retreats, Mannum, South Australia.

There’s a great variety of assets available beyond state capitals, and the Riverview Rise Retreats is a good example, described in the listing as a “high-end 5-star accommodation business”.

The bed and breakfast is near Mannum, South Australia, 30 minutes drive from the International SA Motorsport Park complex.


1469 Bishopsbourne Road,Toiberry TAS. 1469 Bishopsbourne Road, Toiberry, Tasmania.

When it comes to farmland $1 million is enough to buy far more than just a back paddock in Tasmania.

Now on the market seeking offers of more than $980,000, 1469 Bishopsbourne Road, Toiberry, is 30 kilometres from Launceston, the state’s second-biggest city.

The property is divided into 20 paddocks over 91.9 hectares, and well supplied with water from a 150 megalitre dam and an 80ML water entitlement.

There is no house on the property though the listing points to “several suitable house sites”.

Showrooms/bulky goods

Shop 2 33-47 Euston Road, Alexandria, NSW Shop 2 33-47 Euston Road, Alexandria, NSW

For a little more than $1 million you can buy a showroom in Alexandria, just south of Sydney’s CBD.

The property covers 122 square metres and sits on the busy Euston Road complex with rear loading and access.

The property is currently on a two-year lease to Decking Sydney.

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