June 2018 :: Trends and Insights
Industrial Property EOFY Wrap-Up
What a year this financial year has been for the industrial property market! It totally outperformed all expectations. Record new land prices have been achieved in each quarter for the North, South, East and West regions. Developers realise the supply of zoned, serviced land is rapidly coming to an end. This has resulted in a “frenzy” of highly competitive land sales.
In reality, this is a catch-up, considering we experienced hardly any growth in values from 2008 to 2016.
On the ground, we believe that the flow-on effect of the significant land value increases, strong economic performance, infrastructure upgrades and short supply of built form will result in increased rentals/building values and will reduce incentives over the next 12 to 24 months.
Strong demand from purchasers and tenants continues, with many requirements remaining unsatisfied due to a lack of supply.
It has been an outstanding year, and the next financial year outlook is just as positive.
