Western Sydney auction sales show growing demand within the region

2 December 2022

 Three properties including a high performing NAB in Western Sydney have sold strongly under the hammer.

The NAB building in Cabramatta at 22 John Street attracted 10 bidders and 34 total bids, selling for $10.25 million. This reflects a passing yield of 3.59 per cent and is 32 per cent above reserve.

Also sold at auction was a Yagoona TAB building for $1.6 million on a passing yield of 3.38 per cent, with six bidders present and 18 overall bids.

Both properties were sold through the Colliers team of Harry Bui and Andrew Bui.

“Well-leased commercial properties in highly prized Sydney metro locations continue to attract strong investor interest from both local and overseas buyers despite the current changing capital market,” Colliers National Director Harry Bui said.

“While some market commentators may be predicting a price correction, we continue to see that the current low interest rate environment will actually lead to increased buyer demand for good, well-credentialed property.”

The Cabramatta property has been home to the NAB for over 50 years and comes with two other income streams including an accountant and migration agency. The 316sqm property has a net income of $368,469 per annum plus GST and a total net lettable area of 636sqm.

The TAB building has a prominent Hume Highway position with over 60,000 passing vehicles every day. The 371sqm property has a new three-year lease to 2024 with options extending to 2030 as well as an attractive annual CPI increases.

Another strong sale was achieved at auction through Colliers Associate Director’s Nick Estephen and Thomas Mosca in Condell Park, with a strip of retail property selling for $3.4 million for the first time in close to 70 years.

With over 40 people in attendance, the auction of 49-53 Simmat Avenue attracted seven registered bidders which ultimately pushed the price $150,000 above the reserve. Sold on a net passing yield of circa 4.56 per cent, the property has a diverse mix of three tenants on secure three-year leases.

“Despite current economic times, people are still seeing the inherent value of owning commercial real estate assets in thriving local retail precincts. Whilst there has been a recent increase in interest rates, they are still at comparative historic lows from a macro-economic point of view,” Mr Estephen said.

“The commercial strip of Condell Park is an extremely tightly held precinct with very little vacancy. This reinforces the security of income from the building and gives any landlord strong negotiating power when it comes to lease renewal,” Mr Mosca added.

The property is located in the core retail strip of Condell Park, surrounded by bustling food and beverage offerings and essential services. It benefits from proximity to Sydney’s major roads being only 5 minutes’ drive to the M5 Motorway and less than 2km to the Hume Highway.