Mackay agent sells $12M worth of property in three months
FOR Knight Frank's Mark Kelly, the past 12 months were some of the busiest he has witnessed during his commercial property career in Mackay.
The senior consultant was involved in the sale of more than $12 million worth of commercial property, with Knight Frank finalising deals on three properties in the space of three months during the end of 2018.
Mr Kelly attributes the growing commercial sector to a burgeoning resources sector, continued confidence in the prosperity of the region and the recent boom in regional health services.
"At Knight Frank, we had a big end to 2018," Mr Kelly said.
"A lot of that is attributed to the mining and health services - it is all affecting movement."
The highest valued property was 2 Commercial Avenue, Paget, which was purchased by a local business.
While Mr Kelly could not comment on the sale price due to confidentially agreements, he did say it was "unique" to see a property with such high value sell on the Mackay market.
"It sold to a local business proprietor, who needs (the property) to expand his business," Mr Kelly said.
"We did a national campaign (advertising) for 2 Commercial Avenue... and to give you an idea we got a total of six expressions of interest on that one property. Funnily enough there was only one out of town offer, the other five were local."
Two other major properties sold by Knight Frank include the former warehouse at 13 Peel Street in Mackay City and an industrial site at 31-33 Southgate Drive, Paget which sold to separate buyers for a total of about $6 million.
Mr Kelly said as confidence in the local economy had improved, he had noticed more "high end" sales.
Some of this interest is coming from out-of-town investors in Sydney and Melbourne.
"I think it has tapped out in the markets down south/ You hear about the residential sliding in Sydney in Melbourne, however commercial properties are very sought-after. It is a sought-after area especially when you have a good tenant in there," he said.
"In our Mackay market, the basic return is a lot healthier than in southern areas."
In the final quarter of 2018, Knight Frank also saw an additions $2.5 million in gross commercial leasing.