The recent sale of two multimillion dollar commercial properties in Bendigo's central business district demonstrates confidence in the local market, according to two commercial property agents.
Tweed Sutherland First National commercial industrial manager Tom Harrop said buyer interest has been from Bendigo and afar.
"Besides April, the commercial market has been exceptionally strong in 2020," Mr Harrop said.
"Properties are being purchased where businesses want to relocate or develop and invest."
Tweed Sutherland First National sold 46-48 Edward Street, Bendigo at auction in mid-December for $4,010,000, as two bidders from Melbourne went toe-to-toe.
"The building is of high quality and in a very good location," Mr Harrop said.
Four longstanding tenants occupy the building, including IPSUM Advisors, solicitor Peter Cahill, business consulting firm ORM and operations and maintenance service provider Programmed Integrated Workforce.
Across more than 1000 square metres, the site features 91 metres of triple street frontage and generates more than $250,000 per annum in rent.
McKean McGregor real estate's sale of a building with street frontage to both Pall Mall and Mitchell Street demonstrated the value investors see in central Bendigo property, commercial sales agent Jeremy Brown said.
"The property is on the corner of Pall Mall and Mitchell Street, overlooking the historic fountain and was on the market for more than 12 months before this sale," Mr Brown said.
With an advertised selling price of $1.4 million, the final sales figure hasn't been disclosed.
The purchasers are in the preliminary stages of mapping out a plan for the future of the premises, which is near the recently refurbished Beehive Building.
Featuring two existing tenants who pay about $42,000 per year in rent, there is 392sqm of multi-use space available for lease.
"We are seeing more investors enter the commercial and industrial property market, who are seeing value in regional areas," Mr Brown said.
"Some of the yields in Melbourne are so tight, which means there is the opportunity to get more bang for your buck in Bendigo.
"Hopefully the restoration of nearby buildings and planned development such as the new Pall Mall hotel help activate the area and increase its attractiveness."
For more property listings, check out Real Estate View, published every Friday and Saturday in the Bendigo Advertiser, or visit realestateview.com.au
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