A MARYBOROUGH dental clinic has busted the $1million price tag at an auction and has been passed on to new owners.
Real estate agents say that the high sale price is a reflection of the Heritage City's current commercial property market.
Formerly known as Ian Harvey Dental, the health facility was auctioned in Sydney and sold for $1,550,000.
It will now be renamed to Mary River Dental.
Burgess Rawson Queensland agent Glenn Conridge, who sold the dental clinic, said the room for expanding the building and its condition were key component to its successful sale.
"The building itself is a stylish design with modern landscaping commensurate plus garaging and on-site parking," Mr Conridge said.
"This was an ideal investment; prime positioned premises, with strong, secure tenants who pay 100% of outgoings."
Situated at 317 Kent St, the 615sqm site has been securely leased to Dental Corporation Pty Ltd, a wholly owned subsidiary of Bupa until 2020 with options to 2035.
Sprake Real Estate commercial sales and leasing agent Tom Wilson said the occupation of a good tenant was a common trend in selling any commercial property, as was seen with Mary River Dental.
"Any vacant property is a lot more difficult of a proposition to sell," Mr Wilson said.
"The sale of the dental clinic in Kent St is reflective of the current market and what is selling.
"If it's leased up with a good tenant, and there's a balanced time on the lease, then there are buyers in all the price brackets."
Mr Wilson said that the return on residential property in both Hervey Bay and Maryborough was about 4% at the moment whereas it was about 10% on commercial property.
"Commercial property driven by the investor making a decision about the return he wants.
"The dental clinic will show a return investment of about 10%, which is similar to other good buildings."