Sydney and Melbourne industrial land values soar

Cushman and Wakefield is releasing its quarterly industrial research, showing land values in Sydney and Melbourne have surged in the past year (to Q3).

The research shows that despite a stronger Q3 for industrial investment volumes, annual investment remains low at ~$2bn (less than half of that recorded 18 months ago) as owners hold assets tightly given the returns on offer.

Highlights include:

  • Strong demand for land in most of Sydney’s major South industrial markets has led to double digit growth in most size ranges – expected to boost economic rents.
  • Large (+10,000 sqm) sites in Sydney’s West have recorded growth of around 20% year-on-year – now at $600 per sqm.
  • Land prices in Melbourne have jumped in every region (particularly for smaller lots) and the Western precinct jumped 16.7% QoQ.
  • In Melbourne, a spike in bespoke, technology driven warehouses, has spurred competition amongst developers for vacant land to take advantage of the trend for modernised buildings.
  • The Brisbane market remained largely steady, although the M1 Corridor saw modest growth in capital values.

 

View and download Cushman and Wakefield’s full reports below:

 

By: JAGONAL