10 Oct 2015
Newton commercial properties top $3m as 200 watch bidding war.
MORE than $3 million worth of commercial property sold in Newtown yesterday in just 30 minutes.
The auction of a 474sq m vacant block of land at 334 Pakington St attracted a price of $1.655 million — slightly less than $3500 per square metre — while two doors down at 330 Pakington St, the building that Winter’s Cafe calls home sold for $1.265 million.
With GST added on, it means the pair of properties easily broke through the $3 million mark, as a crowd of more than 200 people watched on.
Business owners, bankers, developers and real estate agents joined locals and passers-by, with bids coming from behind fences, via third parties on mobile phones and from eager front-and-square bidders, desperate to snap up a slice of the Newtown market.
Each of the properties exceeded the price expectations of listing agents Darcy Jarman, with director Simon Jarman saying it was a major vote of confidence for the city.
“It’s an incredible result really,” Mr Jarman said.
“It was higher than we originally thought, which goes to show the strength of good retail strips.
“And you can’t go and replace this land.”
Auctioneer Raoul Salter had told the crowd before the land auction began that the beauty of the site — apart from its prime location — was its flexibility, catering to a range of buyers including investors, developers and those with longer-term interests.
Both properties sold to private investors from Geelong, however at this stage there is no indication as to what the buyer intends to do with the vacant block.
Buyers’ advocate Tony Slack, of Geelong Advocates, said it was rare to see such large numbers in attendance for a commercial auction.
“I haven’t seen a crowd as big as that at a commercial auction,” Mr Slack said.
“It shows the scarcity factor, a once-in-a-lifetime opportunity never to be repeated again, and to have that much competition, especially at that level (is great).”
From the Geelong Advertiser, 10 October, 2015.