EXCLUSIVE: Why investors want a slice of Rockhampton
SOUTHERN investors are fighting for a slice of the Rockhampton commercial property pie with a backlog of over 30 buyers from as far away as Singapore.
In the past month, Knight Frank Rockhampton Commercial Sales and Leasing Consultant Jonathon Offord has closed deals on four major commercial properties in Rockhampton, three of which were in the CBD.
The sales, which range between $730,000 and $807,000, come off the back of the recent $10M sale of the NAB Building in East St and the $1M sale of the iconic Swan Hotel building in Denison St.
And with investors practically knocking down the door at Knight Frank, Mr Offord is certain there's plenty more major sales to come.
"The investment market is very strong. We actually have a backlog of 30+ southern investors wanting us to find them properties," Mr Offord said.
"The owner occupier market is not as strong but we are finding clients would prefer to buy a property with the low interest rates rather than pay rent."
Mr Offord's most recent sales include 155 East St ($730K), 21 William St ($800K), 102 William St ($770K) and 187 Musgrave St ($807K).
The 155 East St property last sold in 2004 for $230K, the Musgrave St building last sold in 2014 for $715,214 and the 102 William St property last exchanged hands in 2012 for $352K.
Mr Offord's most notable sale was that of the historic 21 William St building, which houses Subway and seven other tenants. This building was last sold in 2005 for $550K.
He said high returns was the main draw-card for investors.
"We are seeing strong interest from all over the country. Mostly from NSW and Victoria but we are also working with investors from as far as WA and even overseas buyers as far as Singapore," he said.
"Whilst Rockhampton might not be experiencing high capital growth rates we are able to offer investors returns between 8-10% which is a lot higher than what investors can get in the capital cities.
"Whist the recent sales have been purely investment purchases sold on long leases and high yields it is good to see some of the negativity around the mall is not deterring these southern buyers.
"Leasing is still a little quiet in the CBD but we are seeing that if landlords are willing to spend a bit of money initially to bring their properties up to speed then the right tenants are willing to consider the mall. If the right tenants are attracted to the mall then the people and customers will come."