December 2016 :: Trends and Insights
High demand for subdivided industrial land results in scarcity and higher prices!
Due to an increasing demand for Industrial Land We are quickly running out of subdivided land.
Due to the increasing demand, subdivided industrial land is quickly running out.
Throughout Melbourne, prices for industrial development land has increased as the demand outstrips supply. Here is the breakdown of what is occurring in Melbourne’s suburbs.
Northern suburbs:
In the Northern suburbs, large land developments by MAB, Salta, Mc Mullin Group and M. Keller Brothers have been selling at a rapid rate, to the extent that now only a handful of blocks remain.
Western suburbs:
For some time, the Western suburbs have had the greatest supply of readily available industrial development land. This has contributed to the slower capital growth experienced in this area in the last 10 to 15 years. However, the rapid rate of development has led to Melbourne’s west now ranking the fastest growing industrial area in Australia. With the rate of development and decrease in the release of subdivided land, the Western areas are facing a supply shortage in the medium term.
East/South Eastern suburbs:
In the Eastern suburbs, subdivided land is becoming increasingly scarce, with the only land available being redevelopment of infill sites. This has led to an increase in prices, with recent transactions in the Bayswater area achieving $400 per square metre. More options are available in the South East, but these are also selling fast to both owner-occupiers and developers for personal use or land banking. There are no new estates ready for release soon, meaning land will continue to become scarcer and more expensive based supply and demand.
