Auction yields plunge

Queensland property worth more than $18million sold under the hammer this week, including a childcare centre that recorded the tightest ever yield for the asset class in Brisbane.

Burgess Rawson director Pat Kelly said the auctions sparked strong bidding for the eight Queensland properties, of which two were passed in.

"Three of the buyers were from interstate and three were locals," he said. "They're chasing yields but they are chasing better quality assets with good long-term leases."

Smithfield Property Group's Journey Early Learning childcare centre at 402 Moggill Rd, Indooroopilly, sold for $301 million and realised a yield of 5.02 per cent, which is believed to be a Brisbane record.

The other sales were:

• Childcare centre at 168 South St, Toowoomba, $1.9825 million (5.47% per cent yield);
• 7-Eleven at 339-341 Samsonvale Rd, Bray Park, $3.95 million (6.18 per cent);
• 7-Eleven at 166 Pumicestone Rd, Caboolture, $4.92 million (6.19 per cent);
• My Foot Dr at Shop 11, Robina Shopping Centre, $1.013 million (6.62 per cent);
• Hungry Jack's at 147 Pine Mountain Rd, Brassall, $3.536 million (5.74 per cent);

The Giddy Goat entertainment centre at 128 East St, Rockhampton, was passed in at $3.25 million and a childcare centre at 6 Corimba Pde, Boyne Island, at Gladstone, was passed in at $2.54 million.

Mr Kelly said the price points made Queensland property attractive to investors.

Courier Mail article printed on Friday 11 August and written by Chris Herde.