The Illawarra is continuing to attract the attention of commercial property investors from outside the region.
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A freehold Woolworths service station in Unanderra has attracted competitive bidding at auction from parties throughout the country.
However, an Illawarra buyer ultimately purchased the property for $2.35 million on a 7.07 per cent yield.
The property went under the hammer at Burgess Rawson's Flagship Portfolio Auction late last month.
The service station is located at 110-112 Princes Highway.
The selling agents were Burgess Rawson's Rhys Parker and Dean Venturato.
Mr Parker said this site was sought-after, "because people specifically want to invest in that Wollongong catchment".
"We had interest locally, but we also had interest from most capital cities," he said.
"The buyer is from the local region, but he was pushed all the way by a couple of capital city passive investors."
Mr Parker said there were parties from throughout the country who were specifically on the lookout for investments in the Illawarra.
He said capital city investors were drawn to the Illawarra for two main reasons.
"One is the underlying diverse economic base that the area has. People understand that this is a sustainable area.
"And with the soaring population, people can see in the future that there will be potential for an increased value from the capital they've placed."
Mr Parker said the Unanderra site also offered the new buyer a secure and promising opportunity for continued income growth.
"Service station assets with such superb locations paired with secure term leases are highly sought-after offerings," Mr Parker said.
"The investment also assures guaranteed rental growth of between three and five per cent annually, which gives investors confidence going forward," Mr Venturato said.
"With the Woolworths supermarket opposite, it's a petrol station that is always busy, seeing a steady stream of customers every day, each week."
Mr Venturato with the Reserve Bank's July announcement of interest rates hitting an all-time low, those investors with money in the bank are seeking to place funds in investments such as commercial property that provide strong returns and the benefit of long-term capital appreciation.