More than $20m worth of Queensland commercial property was sold at Burgess Rawson’s latest Portfolio Auction as buyers banked on an interest-rate cut soon.

The Queensland sales were part of $131.133m of assets sold across Australia in the three-day auction event which recorded the highest overall price achievement in several years.

The Queensland event had $20.55m in transactions with six of nine assets selling, while there are two in negotiations post auction.

Burgess Rawson Queensland partner Andrew Havig said the results highlighted the confidence in the stability of premium commercial properties, underscored by long-term secure leases to national and global tenant covenants in strategic main road locations.

“The auction room was packed. The feeling was good and there was plenty of strong bidding,’ he said.

“There seems to be a bit of strength in the market. We’re turning the corner with the banks bringing forward their expectations around interest rate reductions. There was a feeling that people wanted to get in and capitalise on the opportunity.’

The KFC in Bourbong St, Bundaberg West for 64. 55m reflecting a yield of 4.87 per cent.

Burgess Rawson’s Neville Smith sold the fast food and convenience retail outlet at Mount Louisa in Townsville leased to United Petroleum, Red Rooster & Domino’s for $7.8m and a yield of 7.3 per cent.

Mr Havig and Beau Coulter sold the KFC in Bourbong St, Bundaberg West for $4.55m reflecting a yield of 4.87 per cent. Elsewhere, convenience retail was strong with the Caltex in Bowen Rd, Rosslea, transacting for $3.04m while a Caltex in Bolam St, Garbutt, sold for $2.881m.

Entry level purchasers were also out in force with the Oakey industrial property leased to Nutrien Ag Solutions snapped up for $781,000 at a yield of 6.51 per cent.

A Star Liquor & Liberty asset in Kepnock sold for $1.50lm reflecting a yield of 7.23 per cent.

Mr Havig said buyers ranged from mums and dads to high net worth investors, with many happy to change strategies during the auction.

“We’re finding that someone will have a priority asset and whether its before the auction or on the day they will add another one or two to the list,’ he said.

The Courier-Mail – Chris Herde