Price of Concord retail building gains more than $1 million in a year

The corner block was bought by an investor who recently offloaded a property in Sydney’s north-west and was looking to reinvest the funds.

The Concord site last sold for $6.61 million in December 2016, Domain Group records show – representing an uplift of $1.04 million in 15 months.

With a crowd of about 150 in the room, four bidders competed for the building, with an opening bid of $6 million.

The buyers contributed 28 bids in an auction that lasted eight minutes. The last bid cemented the final buyer’s winning position with a substantial $45,000 at a point where people were bidding in $5000 increments, surprising auctioneer David Schole who asked the bidder “are you sure?”

Burgess Rawson sales agent Kieran Bourke, who had the listing with Simon Staddon, said Concord was a “high-end retail precinct” in a tightly held market.

“Concord is one of the prestigious retail strips in Sydney,” he said.

“Every time we list something in Concord, we get a huge spike in inquiry and interest. We had two site inspections and over 12 parties attended.”

The vendor was divesting to minimise risk with the bank as he was suffering from health issues.

The property, which received more than 140 enquiries.

The ground floor of the 310-square-metre building is leased to Priceline Pharmacy until October 2025 and the physiotherapy occupies the first floor until February 2021. Both come with five-year options and annual rent increases of 3 and 3.5 per cent.

Interested buyers came from the inner west, other parts of NSW, Victoria and Brisbane.

Another property that went under the hammer at the Burgess Rawson auction, a childcare centre at 2 Hickory Close, Alfords Point, sold for $3.27 million. That one received a starting bid of $2.8 million.

The two assets were among seven of the eight commercial properties at the portfolio auction that sold, with one other selling before the event. Two more are under negotiations.