A COMMERCIAL property gold rush is under way in the Bendigo CBD, with a number of buildings and land titles on the market.
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No less than 10 properties are for sale in the city's central area with the Abbott Arcade in Lyttleton Terrace, the Oz Design Furniture precinct and the artfully decorated building at the corner of Mitchell and Mundy streets the most recognisable listings.
Tweed Sutherland First National Real Estate Bendigo director and commercial sales consultant Craig Tweed said commercial properties like the Abbott Arcade - which is currently home to seven businesses - is an ultimate investment for people looking to own retail spaces.
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"With a property like this, the risk factor is low," he said. "With potentially eight tenancies servicing any purchase, it's the ultimate investment as far as retail investors go.
"You don't see many shops vacant through there. It was built around 1985 and has always been recognised as one of the most popular arcades with the link to Coles and that shopping complex in Lyttleton Terrace.
"At the moment with the low interest rates, it is a great time for people to be buying.
"A lot property (in Bendigo) is selling on yields of 4.5 to 6 per cent. Bendigo's core CBD is still very safe. The future is very strong."
The Mitchell-Mundy street property - which houses 8 Sisters Cafe and Grill and features a Minna Leunig mural - came on the market this week following the sale of neighbouring Mitchell Street buildings that are home to ANZ Bank and Bendigo Bank branches.
Stonebridge Property Group has listed the 8 Sisters Cafe and Grill building and the vacant land on the corner of Williamson and Mollison streets - which has been approved for hotel development - on their books.
"We have seen a major increase in buyer demand from Melbourne, Sydney and Tasmania towards regional Victoria, including Bendigo, Geelong, Ballarat and Sale," Stonebridge Property Group partner Rorey James said.
"Buyers are attracted to the better returns (generally) on offer and the 50 per cent stamp duty savings.
"They also have a great deal of confidence in regional areas off the back of the pandemic and more people now living permanently there. We understand that more than half the people who moved away from Melbourne during the pandemic into regional areas have not returned - that is a very telling story.
"The other reason for an increase is due to a lack of good quality opportunities and supply in Melbourne, forcing buyers to look elsewhere for their commercial property requirements."
Priority1 Property Bendigo director Chris Garlick is managing the listings for the Oz Design precinct at the corner of High and Short streets and the historic Bendigo Antiques Market building in High Street.
Mr Garlick said the ripple effects of the people moving to regional areas during the pandemic was providing benefits.
"With the events of the past couple years, businesses understand they don't have to operate in the Melbourne CBD or other places like that. Some can downsize," he said.
"Bendigo has still got really good infrastructure to travel back and forth to Melbourne if you have to.
"(The region) is providing opportunities for people to look outside the square and look at regional centres and work-life balance choices that are on offer in Bendigo.
"I have been surprised at the amount of cash investors that are out there at the moment. A lot are looking to put money into commercial properties."
The Oz Design listing includes three vendors that have come together to list the area as a package including the Oz Design Furniture building, the former Ray's Outdoors site and a commercial building in Short Street. Expressions of interest close on June 16.
"It's fairly unique. That's a large offering for the centre of Bendigo but without the vendors working together, we couldn't have done that," he said.
"It has been a year in the making to get it structured right and understand existing tenants and their leases.
"(The listing) went up Wednesday night and has had seven strong inquiries already."
Mr Tweed said expressions of interest for Abbott Arcade closed on June 10.
"The decision from the vendor to move on and lodge it for sale wasn't taken lightly," he said.
"Commercial freeholds in Bendigo are always sought-after. It's a very established and respected market."
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