PRIME PROOERTY: 6 Dooley St, Park Avenue, the site of Rifen Marine and Olive and White Cabinet Making, sold for $1.9million last month.
PRIME PROOERTY: 6 Dooley St, Park Avenue, the site of Rifen Marine and Olive and White Cabinet Making, sold for $1.9million last month. Contributed

Demand higher than supply in commercial real estate sector

A PROPERTY housing a Rockhampton boat and cabinetry business has sold for close to $2million.

Long established businesses Olive and White Cabinet Making and Rifen Marine are tenanted on the Dooley St, Park Avenue site and have both signed new five year leases.

The property settled at the end of April for $1.9million and was sold through Brisbane-based agency Burgess Rawson to a Sydney-based private investor.

Agent for Dooley St, Glenn Conridge said the buyer was interested in the Rockhampton market and was aware of the last two recent sales and thought it represented strength in the region.

Good value, a quality asset and long term tenants were the compelling features of the property, along with the 8.5 per cent yield.

"Compared to Sydney yields it was an attractive yield,” Mr Conridge said.

"The Rockhampton story is appealing to the investors as a sole regional town in terms of its property market.”

Burgess Rawson has sold approximately $20m of real estate in Rockhampton this year so far.

"Mining is being perceived as improving and the price of coal is going up,” Mr Conridge said.

Buyers also see Rockhampton as a town that has a strong agricultural base and not completely reliant on mining.

Given this, the supply and demand is not balanced as there is not enough properties for sale compared to the amount of interest from buyers.

"When they come up people are watching out for them,” Mr Conridge said.

"Properties that have good long-term tenants will always sell well and quickly, along with a good location.”

The site was on the market for more than 200 days, from September last year until April.

The property has a net income of $172,200 per annum plus GST and outgoings.

The site itself is a prime freehold block with 2, 691sqm fully concreted and sealed and a building area of 930sqm which includes a new warehouse, showroom and office.

In June 2017, the land was valued to be worth $295,000.

The site previously sold for $675,000 in 2009 and in 1991, it sold for $155,000.

This sale backs up some other major sales across the region in the last few months, including the new United Petroluem service station on Albert St which sold for $4.7m in April.

Giddy Goat also sold for $3.175m in March to a Sydney-based investor.

Other recent sales include 231 Musgrave St, an retail space tenanted by Rockhampton Army Disposals with a separate building at the back and a three-bedroom residence on the first floor, sold for $820,000 through LJ Hooker in March.

A huge 3, 178m2 block at 17 Bush Crescent, Parkhurst, with a large industrial shed, also sold in March through Kas Woch Real Estate.