A large corner site at Kilburn attracted 221 bids in a spirited auction before selling under the hammer for $3,520,500.

A Sydney investor withstood competition from nine other bidders for the strip retail asset Kilburn Village, set across a 1836sqm site on the corner of Prospect Rd and Jersey Avenue.

In what was one of the most hotly contests auctions in Adelaide over the last 12 months, the property transacted on an ultra-tight 1.9% yield.

LJ Hooker Commercial Adelaide’s Mark Tettis and Charles Parletta managed the auction campaign.

Mr Tettis said: “We were highly impressed by the market's response”.

“We were confident Kilburn Village’s location and mix of tenants would be well received. It offers great convenience for neighbouring residents and exposure to 32,000 vehicles a day.

“Strip retail assets are attracting high levels of enquiries, they are generally well positioned, under leased and with underlying redevelopment potential.

“But to attract well over 200 bids shows there's significant demand for well-positioned and well-established retail assets in the suburbs.”

The Sydney-based purchaser was part of a growing movement of interstate investors who comparative affordability of suburban retail in Adelaide. 

Mr Tettis said stamp duty exemptions on commercial property in South Australia is adding to the weight of money coming in from interstate.

A laundromat, hairdresser, butcher and restaurant are among the tenants across a net lettable area of 455sqm.