Three Auction Sales in Three Days Signals Huge Confidence in Adelaide Market

August auction sales

Three auctions in three days. Three strong sales.

McGees Property has overseen a big week for Adelaide’s commercial real estate landscape as investors, owner-occupiers and developers alike signal a strong confidence in the market.

The auction sales included:

• 19 Main North Road, Medindie for $4.065 million
• 1 Gumbowie Avenue, Edwardstown for $2.7 million
• 13A Seaforth Avenue, Somerton Park for $1.91 million

“These results are a testament to the strength of the auction process, the quality of the assets, and the commitment of our team in delivering successful outcomes for our clients,” said McGees Property Partner James Juers.

“The depth and breadth of enquiry we generated reflect the fantastic opportunities on offer across Adelaide, and that’s evidently creating high competitive tension in our campaigns, which are delivering market-leading results,” he said.

The prime landholding of 2,129sqm at 19 Main North Road, Medindie was sold through McGees’ Simon Lambert and Phillip Joncheff, whose campaign generated 46 competitive bids at the auction, and a sale price that reflected a high land rate of $1,909 per sqm.

“There’s strong depth of demand for well-positioned sites in the land-constrained inner north, and larger landholdings like this are very scarce,” Lambert said.

A functional warehouse facility of 864sqm – occupied by Adtrans with a redevelopment clause in place – meant investors and owner-occupiers joined developers in the bidding, keen to secure a high exposure, highly accessible property.

Purchasers Geoffrey Yu and Francis Chow intend to use the site for development and are assessing their options.

On the other side of the city, local business acquired the 1,105sqm office/warehouse on a 1,577sqm corner site at 1 Gumbowie Avenue, Edwardstown. McGees’ Ross Christodoulou, who sold the property with Juers, said the purchaser will hold the property as an investment before going on to occupy down the track.

This property is nearby to the purchaser’s existing site and the business is on the expansion path.

“As well as owner-occupiers, we received interest from investors and developers among the 70-plus enquiries, showing the versatility of the site and the broad church of active buyers in the market currently,” Christodoulou said.

Hot competition for the property resulted in a price that showed a tight 4.62%.

Another owner-occupier came out on top for the warehouse unit at 13A Seaforth Avenue in the beachside suburb of Somerton Park, sold by Christodoulou, Juers and Daniel Scinto.

The purchaser will use the property as a man cave, for the storage of cars and toys.

“Owner-occupiers are continuing to have a big say in Adelaide’s industrial market at the moment,” Christodoulou said.

“They’re making enquiries and actively bidding for a range of assets. We’ve seen this week that extends from man caves through to larger headquarters-style facilities.”

Lambert said, “Adelaide and South Australia is a great place to invest, run a business, and develop in, supported by a substantial pipeline of public and private capital investment and a growing population base.

“South Australia has transitioned into a diversified and resilient economy, underpinned by sustained investment across defence, space, health, education, technology and migration, which is setting up great short- and long-term prospects,” he said.

“The state continues to strengthen its workforce depth and appeal as a destination for business, talent and capital.”

He added that South Australia offers a highly competitive transaction environment, having abolished stamp duty on qualifying non-residential and commercial property transfers, reducing upfront acquisition costs.