Albury commercial market still booming as pair of properties sell at auction

STORY ACCREDITATION: The Border Mail, March 1 2024 | WRITER: Beau Greenway 

Nine bidders put forward offers for this commercial office and warehouse on the corner of Hovell and Townsend streets in South Albury, which sold for $875,000 at auction on Friday, March 1. Picture supplied

Nine bidders put forward offers for this commercial office and warehouse on the corner of Hovell and Townsend streets in South Albury, which sold for $875,000 at auction on Friday, March 1. Picture supplied

Two commercial properties on the fringe of the Albury CBD have sold for more than $1.7 million combined at auction.

A warehouse and office on the corner of Hovell and Townsend streets in South Albury was eventually sold to a Border and North East building company for $875,000 after huge auction interest, with nine bidders involved in proceedings on Friday, March 1.

An opening offer of $625,000 was accepted by Dixon Commercial Real Estate auctioneer Oscar Dixon for the 630-square metre site, two blocks from the Albury CBD, before it quickly jumped to $700,000 in rises of $25,000, which was enough to get it on the market.

However, it was far from the end of the auction as offers continued to pile in to take it to $750,000.

Bidding then reduced to $10,000 rises to lift the price to $790,000.

With the exception of two $10,000 bids, all new offers were $5000 as the price soared well above its reserve all the way to $875,000 before the hammer fell.

The property has a combined annual rental income of more than $46,000 with the 240-square metre warehouse and 112-square metre office building leased until July and October 2024, respectively.

Later in the day, the agency also sold a 525-square metre property that houses a residential real estate firm to a Border investor for $850,000.

The real estate office of Stewart Gould on David Street in central Albury sold at auction for $850,000 on Friday, March 1. Picture supplied

The real estate office of Stewart Gould on David Street in central Albury sold at auction for $850,000 on Friday, March 1. Picture supplied

Auctioneer Andrew Dixon opened proceedings for the Stewart Gould real estate office with a vendor bid of $750,000, which was soon eclipsed by an offer of $775,000.

Two parties vied for the lot which increased to $800,000 before bids were lowered to $5000.

The property was on the market at $835,000, with $2500 rises taking it from $840,000 to its eventual sale price of $850,000.

Stewart Gould commenced a five-year lease in March 2021, which produces more than $46,000 annually in rent.

“The Hovell Street one was a unique property and the really good thing was it showed the depth of the market,” Andrew Dixon said.

“A price of $850,000 for the David Street property is a yield of about 5.5 per cent. It’s a well appointed office, has a good lease in place, and the on-site parking and great position make it very desirable.

“The job keeps rolling on and the region is not slowing down.”