Raine and Horne Commercial

21 | INSIGHTS SPRING 2018 NSW | Hunter Steve Dick of Commercial Newcastle, says yields in Newcastle range from 5.5-7.0% on retail assets, 6.25-7.5% on office property, to as much as 10.0% for industrial property. He believes these yields will remain unchanged for the remainder of 2018 though adds, “The only factor that could affect this is banks tightening their business lending and backing out of funding for SMSF lending.” According to Steve, “The main factor shaping the commercial property market will be the buoyancy of the coal sector plus a drive by the Port of Newcastle for the development of a container terminal.” Raine & Horne Commercial Newcastle recently conducted a successful online auction using the innovative ‘Openn Negotiation’ app that allows buyers from anywhere in the world to pre-register, execute documents and place a bid at any time before the final bidding stage. Steve says, “Openn Negotiation provides an entirely transparent process with the sellers and buyers in total control and fully aware of what everyone else is bidding.” The online auction saw three registered bidders making as many as 42 bids jostle for the property – an office building with some retail space at 126 Darby St, Cooks Hill. It sold under the hammer for $2.25 million, a result that exceeded the vendor’s expectations. Newcastle “ The main factor shaping the commercial property market will be the buoyancy of the coal sector plus a drive by the Port of Newcastle for the development of a container terminal ”