Burgess Rawson once again showed they are the market leaders with the Portfolio Auction 160 Melbourne event seeing $37.272 million in sales taking the Sydney and Melbourne combined amount to $72.5 million.Both days achieved success rates of 74%.

Burgess Rawson CEO Ingrid Filmer said the conservative budget announced last night has underpinned confidence in the commercial property market.

“We had strong bidding at our auctions cementing the investor confidence in solid bricks and mortar assets, with our properties achieving yields that have not correlated with interest rate rises.

Investors were lured to regional and metropolitan assets with the secure leases and quality tenants key attributes buyers seek.

A highlight was the $1.035 million sale of a Goodyear Autocare in Anderson Street, Leongatha which sold on a yield of just 3.75%.

Early education was another strong performer with the Children’s House of Learning in St James, WA selling for $1.18 million, on a yield of 4.66 per cent. In Melton, the Story House Early Learning Centre sold for $1.75 million on a yield of 5.3%.

EG Group sold its second property located on the corner of O’Herns and Cotter Roads, Epping for $7.4 million. The asset provides a net annual income of $444,225 and is a significant 3,483 square metre landholding. The sale follows yesterday’s result of their Cameron Park property which sold for $7.67 million, reflecting a yield of 5.87%.

In Whitehorse Road, Blackburn, the Daiku Restaurant in the Pace development sold for $2.35 million reflecting a yield of 5.45%.

The Sydney auction saw 14 properties sold for a total of $35.25 million reflecting a success rate of 74%.

Highlights in Sydney include the brand new vacant centre in East Hills which sold to an owner operator for $3.977 million. If leased, it offered a potential income of $176,000 which would provide a return of just 4.43%.

A clean sweep was achieved for the four entry level retail assets leased to NRMA. The Nowra outlet sold for $1.62 million on a yield of 6.91% while the Picton property was the most affordable selling for $801,000, reflecting a yield of 6.35%.

Portfolio Auction 160 will reconvene at The Hilton in Brisbane on May 11.

Melbourne highlights

• $37.272m over 11 sales
• Success rate of 74%
• Blended yield of 5.9%

Sydney highlights

• 14 properties sold for a total of $35.249 million
• Success rate of 74%
• Blended yield of 5.12%

Day 1 of Burgess Rawson portfolio auction 160 - Sydney early learning centre sold on a record 2.75% yield