Stonebridge Property Group’s National Portfolio Auction held yesterday in Melbourne, showcased continued strength and investor confidence in the freestanding investment market. With live streams to Sydney and Brisbane, the three locations attracted over 100 attendees along with active remote and interstate bidders, contributing to a competitive and confident auction environment.
This renewed momentum follows the Reserve Bank of Australia’s recent decision to cut the cash rate, marking a broader shift toward more stable and cheaper debt.
“The ‘smart money’ began seeking commercial investments earlier this year as rate cuts were on the horizon. The RBA Governor’s dialogue has now shifted to welcome further rate cuts in the short term, as financial markets predict a further three reductions by February 2026. There is no doubt this will have a positive impact on commercial property valuations and increase buyer depth throughout 2025” said Tom Moreland, Partner of Stonebridge Property Group.
A standout result from yesterday’s auction was the sale of KFC Waurn Ponds for $3,120,000 at a yield of 3.54%, underscoring robust demand for quality fast food assets.
“Interstate bidding was a clear theme of yesterday’s auction, with multiple buyers and bidders coming from different states. KFC Waurn Ponds witnessed strong bidding activity from investors across Victoria, New South Wales and Queensland receiving a total of 41 bids from 15 registered bidders” commented Kevin Tong, Partner, Asia Practice, Stonebridge Property Group.
The Melbourne property was purchased by a Sydney based investor, who purchased the asset live from the Melbourne auction room. A Queensland tyre and auto centre in Cooper Plains was also purchased by an interstate investor from Melbourne.
Kevin added “ We are witnessing continued depth of Asian capital fuelling competitive tension across state lines. This reaffirms investor confidence in quality commercial real estate. Year to date, Stonebridge Asia Practice team have transacted $216m worth of commercial property to Asian investors with childcare and fast food being the most sought after asset classes”.
Several strong results were recorded at Stonebridge’s May Auction, others include:
KFC Acacia Ridge: was the first Brisbane Metro KFC to sell in 4+ years – selling for $4,230,000 at a 4.56% yield with 10 registered bidders.
Auto Masters, Cooper Plains: achieved the lowest yield for a QLD strata tyre and auto, selling for $2,170,000 at a 4.38% yield with 10 registered bidders.
Reject Shop, Ocean Grove: was attractive due to its high growth the 5.42% yield demonstrated investor confidence in the area. The asset sold for $3,450,000, with 8 registered bidders.
Green Trees, Croydon Park: the childcare asset located 8km from Sydney CBD sold for $2,310,000 at a 5.28% yield.
Stonebridge Property Group will be closing several EOI’s over the next week as part of their fourth National Portfolio for 2025.
Join The Discussion