The exodus of investors from the housing market is fuelling demand for small commercial properties like laundromats offering higher returns and sticky tenants.
Girish Ramkrishnani acquired two commercial properties in regional SA on yields of more than 6 per cent. He intends to sell down his Melbourne residential investments.
Over $27m worth of social infrastructure assets were snapped at auction this week, including a Melbourne ambulance station which sold on a low 3.96pc yield.
As investors sell out of residential property, they are reinvesting the money into small commercial property assets on long leases to major retail tenants.