The central Dunedin George St property which sold in an
auction bidding war for $1.13 million. Photo by Peter
A vacant commercial George St building, requiring
earthquake strengthening, has sold at auction in ''as is''
condition for $1.13 million, almost double the opening bid.
The modest two-storey property of 126 sq m has a 100sq m
footprint and carries a capital value of $740,000.
Dean Collins, of Colliers International, said the property,
opposite the Meridian mall, was on the market for four weeks
before the auction.
Opening the auction at $650,000, about 70 bids were made by
about six people, before it sold for $1.13 million.
Despite requiring an estimated $100,000 on
earthquake-proofing, and lacking a sitting tenant, the
building's central location in the ''tightly-held Golden
block'' of central Dunedin property had attracted a lot of
interest, Mr Collins said.
''In the end, there was a bidding war between two buyers.''
The late-1800s single-title freehold property has 4.3m of
George St frontage and is zoned Commercial: Retail (non
residential), and the land is valued at $590,000.
The unidentified Otago buyer intended to possibly lease it
out as is, Mr Collins said, and in the medium term might
earthquake-proof the building or redevelop the site entirely.
There was strong demand for prime retail space, but a
shortage of quality premises, meaning central rentals had
''increased modestly'', he said.
Rental of second-tier properties had eased, with landlords
offering incentives to attract tenants, he said.