A substantial landholding in one of the most tightly-held CBD fringe markets is set to go under the hammer, giving an early glimpse into the strength of the 2022 commercial auction market.
The two adjoining buildings on three titles at 180 Commonwealth Street, 2-4 Little Albion Street and 1 Ann Street in Surry Hills are on 402sqm of land and have a building area of 680 sqm with two separate short-term tenancies.
Surrounded by some of the nation’s most exciting infrastructure projects, most notably Tech Central, the properties provide the perfect opportunity to take advantage of the continued transformation of the vibrant city fringe suburb.
The site is exclusively listed with the Colliers team of Matt Pontey and Miron Solomons with a price guide of circa $10 million.
Interest is expected to be strong from owner-occupiers, developers and investors, all keen to take advantage of future investment in the region, with billions of dollars’ worth of infrastructure having already been committed by both the NSW Government and the private sector.
“The city fringe market has remained incredibly resilient throughout the duration of the pandemic, with many businesses recognising the importance of locating their premises in trendy and vibrant suburbs like Surry Hills,” Mr Pontey said.
“The nearby Tech Central is an exciting project which looks set to pump billions of dollars into the local and national economy. Atlassian is set to anchor the project which has in turn attracted another major corporation in Afterpay. This project, set to be completed in 2026, will significantly change the city fringe as well as place Australia in a competitive position on the global stage when it comes to technology and start-ups.”
Having been converted from a warehouse, the property has plenty of character features and includes garaged tandem parking onsite for up to four cars. Zoned R1 - General Residential with existing commercial tenancies, the properties have a combined annual gross rental income of around $314,000 per annum.
“2022 looks set to be one of the most active years in the commercial market with interest rates remaining low and capital seeking out yielding assets with good long-term prospects,” Mr Solomons said. “There is a prevailing view in the market that this year there will be upward pressure on capital values to break over the $20,000 per sqm mark, which looks likely given the significant under supply of quality commercial accommodation in the market.”
Recent deals are a strong indicator, with the sale of 54 Foveaux Street in Surry Hills through Colliers at $18,977 per sqm and 1 Butt Street, Surry Hills at $17,791 per sqm both proof of this.
In the nearby Eastern Suburbs this mark of $20,000 per sqm is regularly being achieved in many areas, particularly Double Bay, which demonstrates in markets where there is limited supply that there is always going to be upward pressure on capital values.
No. 180 Commonwealth Street, 2-4 Little Albion Street and 1 Ann Street, Surry Hills will go to auction on Thursday, March 3, 2022.
