November 2023 :: Market Updates
Market Outlook: Industrial Property Melbourne
"What does the industrial property market look for in 2024?"
Hello all, Drew Williams from Rutherford's Real Estate here. As specialists in industrial property in Melbourne's northern and western regions, we’ve been getting a lot of questions about what the industrial property market will look like in 2024, especially following the latest interest rate increase—the 13th in about 18 months. Here’s a brief overview of what we’re seeing and expecting for the year ahead.
Increasing Stock Levels
One noticeable trend is the growing interest from property owners, investors, and developers in selling assets. This has led to an increase in the stock coming to the market, which is a welcome development given the ongoing imbalance between supply and demand. We anticipate this trend will continue into 2024, providing much-needed inventory to the market.
Realistic Vendor Pricing
We’re also seeing more realistic vendors in the market. These aren’t distressed sellers but rather vendors who are serious about selling and are pricing their properties at realistic market values. This is good news for buyers, who have faced frustrations over the past few years with rapidly escalating prices during negotiations. Now, with vendors pricing properties more realistically, buyers can expect fair market values.
Buyer Opportunities
Given this shift, we expect a healthy volume of transactions in 2024. There’s a large pool of cashed-up purchasers ready and willing to buy assets at reasonable market rates. With the anticipated increase in available stock and realistic pricing, these buyers will have better opportunities to make successful acquisitions.
In summary, 2024 looks promising for the industrial property market. The combination of increased stock, realistic vendor pricing, and prepared buyers suggests a more balanced and active market.
Thank you for your time, and I look forward to seeing how the year unfolds.
