It comes after the $10.1 million sale earlier this week of the prominent 3746 sqm premises, on the corner of Edward and Flinders streets, that houses the city’s largest liquor outlet, Dan Murphy’s, for a staggering $10.1 million from a Sydney-based investor. The property sold at a yield of 5.2 per cent.

Another prime location was up for auction on Friday – the 1812sqm premises on the corner of Baylis and Tompson streets.

Egan Valuers owner Chris Egan said with rental yield so high in the cities, metro investors were looking to regional areas to buy where capital gain opportunities were much higher.

“They are looking to buy an income stream more than the property itself,” Mr Egan said.

“Yields are at an all-time low in Wagga, which can be connected to the low interest rates.”

He said investors were searching for properties that were positively geared, where the rental income covers the costs of loan repayments.

City property investments were more likely to be negatively geared due to the high-value market, meaning the rent income would not cover the cost of the loan repayments or other costs.

“I’ve had a lot of inquiries from Sydney investors,” Mr Egan said. “Returns are too low investing money in the bank and the share market can be seen as too risky.”

It all points toward a prosperous future for commercial property, according to the experienced valuer.

“It reminds me of when the residential sector took off (about a decade ago),” Mr Egan said.

He said large properties that were multi-tenanted, such as the one on the corner of Baylis and Tompson streets, offered investors a safer option than a site with only one tenant.

“That way if a tenant leaves you still have a revenue stream while a replacement is found,” he said.