September 2016 :: Market Updates
Melbourne; An industrial Market Haven
The Melbourne Industrial Market continues to be one of the most logical and sought-after in Australia, with Sale and Lease pricing reflecting some of the lowest rates in the country providing maximum economical efficiencies and benefits...
The Melbourne Industrial Market continues to be one of the most logical and sought-after in Australia, with Sale and Lease pricing reflecting some of the lowest rates in the country providing maximum economical efficiencies and benefits. These rates are reflective of supply and demand dictations, with Melbourne still being the largest Industrial Property Market nationally.
The continuing availability of land options in all three mainstream Industrial nodes of North & West provides some of the widest variety of options and locations, and are able to cater for most if not all requirements.
The fact that a large portion of Australia’s sea freight comes through Melbourne’s Port and Freight Hubs and the availability of extensive freight and distribution networks by both road and rail is also a huge attraction for warehousing and distribution operators, and is largely why many international companies select Melbourne as their national headquarters and operations centre.
Demand to Purchase properties is very strong at present, largely due to record low interest rates creating unprecedented enquiry from Tenant’s seeking to break the Leasing cycle and secure their own property, with current finance rates being approximately half leasing rates.
Investment demand is also strong largely due to poor interest returns from cash rates with Banks and Financial Institutions, however availability of quality Investments is low with existing investments owners not having no incentive to sell and therefore holding properties for longer.
Opportunities for growth are good, current land holdings whilst available now are forecast to diminish due to high demand leading to a possible shortage before new areas are developed and released, therefore purchasing now to landbank or develop has the potential to realise good returns in the coming few years ahead.
Development demand is also strong, with Unit developments flourishing in all areas according to strong demand from the home trades and self-storage sector, all contributing to Melbourne continuing to remain an Industrial Market Haven from all aspects, of which Rutherfords are at the forefront and are able to assist with all Industrial Property requirements, please advise your requirements and we will be only to pleased to assist.
