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.
- 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: