Investors profit from Victorian commercial real estate auctions

The Early Learning Center at 73-75 Tareda Way in Ocean Grove sold for $ 3.3 million.

Cheap money and government policies have led investors to take advantage of young children in Victoria.

At a recent auction event, it became increasingly clear to people that the early childhood education center was an “essential service” that was helping a small fraction of them make big sales.

Burgess Rawson’s portfolio auction this week included four Victoria Centers with a total deal value of less than $ 24 million.

Related: Live and rolling updates from the auction market

Castlemaine Presbyterian Church, Hall and Homestead in the Market

How to buy, sell and rent in the uncertain Covid-19 lock-in era

Director Adam Thomas said demand for childcare investments had increased since October last year, but there had been a boil at the latest auction. They attracted up to 12 registered bidders, all bidders. They all sold their million dollar purchases for less than 5%.

Many investors know that the federal government’s support during the nationwide blockade last year effectively guaranteed the owners’ income and kept the center open to the children of basic workers.

No. 2A-4 Roseberry Grove, Glen Huntly, priced at $ 6.905 million.

This year’s budget announcement provides grants for parents to look after their second child to meet investor needs.

“These are of course indispensable services,” he said.

A property in Belmont, Geelong, in connection with the Bean Squeeze Coffee Shop, sold to an investment group with supporters in Sydney and Hong Kong for $ 7.6 million.

322-328 High St, Belmont-Pioneer Sun Real Estate

322-328 High St, Belmont, a combination of early childhood education and a drive-through cafe.

In Ocean Grove, G8 Education Center sales were $ 3.3 million, Sunbury Center sales were $ 6.11 million, and Glen Waverley Evolve Early Education sales were $ 6.905 million.

“What we are really seeing is a real revival of confidence in childcare facilities,” said Thomas.

“All Victorian day care centers sell for less than 5%.”

85 Belleview Drive, Sunbury pioneer Sun Real Estate

The Early Learning Center at 85 Belleview Drive in Sunbury sold for $ 6.11 million.

The busiest auction, however, was a Foodworks supermarket in Sunbury with 16 registered bidders and sales of $ 1.925 million.

The portfolio auction will sell 41 properties across the country, including 14 in Victoria.

Thomas said that Victoria’s listing price averaged 11% above the reserve price because of “backlog”, and comments from the Reserve Bank of Australia suggest interest rates will remain at historically low levels for many years to come.

He estimated that commercial property yields were down 1.5% to 2% compared to the same period last year.

Sign up for the Herald Sun for weekly property updates. Click here. Send the latest news on the Victorian real estate market straight to your inbox.

more: Paul Jennings’ former St Kilda Pad sells new twist

Mornington Peninsula sellers make more than $ 700 million in home sales in the first quarter of 2021

Woodend’Plant Wonderland ‘a dreamlike paradise