2 MIN READHow much of the housing market can you afford?
Aussies can no longer rely on their incomes and savings alone to fund a property purchase, as prices soar and incomes st...
Read More
SHARE 
Investors are cashing in on the increasing demand for commercial real estate, with vendors selling their properties well over reserve.
Raine & Horne executive chairman Angus Raine said commercial assets priced between $1 million and $3 million are increasingly popular with yield-hungry, self-managed super fund trustees, which is paying off for vendors.
“Low cash rates are also helping the smart money find its way into commercial real estate, which is producing some good sales results for vendors,” he said.
The real estate group cited a recent sale in Sydney’s North AshfieldAshfield, NSW Ashfield, WA, which sold for 29 per cent above the vendor’s reserve figure – ultimately going for $1,525,000 at auction.
In addition, a retail building in Marrickville sold under the hammer for $2,305,000 – $355,000 above the vendor’s initial reserve.
Raine & Horne principals across Melbourne and Brisbane also experienced positive results and said "DIY super funds” were cashing in on the boom.
Jason Beveridge, principal of Raine & Horne Commercial Victoria, said 2015 has been a consistent year for industrial property markets.
“It’s been a stock standard year for the sub-$1 million markets, and we expect a reasonable amount of activity for industrial assets in the run-up to Christmas,” he said.
“We’ve seen some tenants upgrading to owner-occupiers, which makes a lot of sense in the current low interest rate environment.”
Read more:
Outer-suburb markets could halve in value
How much are celebrities' homes going for?
Developer jailed after investors lose life savings
Market to slow for 'prolonged period'
Securing a property at auction
SHARE
Get notifications in real-time for staying up to date with content that matters to you.
Copyright © 2021 Smart Property Investment
