Rental yields on commercial properties continue to run almost double the yields being achieved on residential investment properties.
Last week Ray White City Apartments auctioned a large 110 square metre, two bedroom apartment in Auckland's CBD that had recently had remediation work for weathertightness issues completed. It was the only property on offer at last week's auction, but there was still a good crowd of potential buyers that turned up ready to bid and it sold under the hammer for $615,000.
It was rented at $615 a week, which would have provided a gross rental yield of 5.2% and once rates and body corporate levies were allowed for the yield, would reduce to 4.2% (before allowing for potential periods of vacancy, any rental management fees and interior maintenance on the unit).
That contrasts with the 7.8% net yield achieved on a 1000 square metre warehouse at Wiri in Auckland which was sold for $1.08 million by Knight Frank.
That sale was one of a couple of industrial properties recently sold by the agency.
See below for full details of the recent sales from both Knight Frank and Ray white City Apartments..
Auctioned by Ray White City Apartments:
- 5J/205 Hobson St, Auckland CBD. A 110 square metre, two bedroom, two bathroom unit with a car park, rented at $615 a week. Sold for $615,000. Rates were $1175 and the body corporate levy $4698. The agents were May Ma and Mark Li.
Recent commercial property sales completed by Knight Frank:
- 9 Sir James Wattie Drive, Hornby, Christchurch. A 4682 square metre and office on a 10,056 square metre site. Sold to an owner-occupier for $5.75 million. The agents were Campbell Taylor and Sam Stone
- 138 Kerrs Rd, Wiri, Auckland. A 1000 square metre warehouse. Sold for $1.08 million providing a yield of 7.8%.The agent was Josh Franklin.
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