Buying or selling and all kinds of property transactions in conveyancing process
“The East and Inner Regions represent the smallest proportion of development, given the limited developable industrial land available and cost”, “regions particularly to the West are now far more desirable given their connections to infrastructure.” “This is evidenced by the large early feasibility supply pipeline for the Western Region; currently 300,000 sq m is being planned in Ravenhall.”
“The Riding Boundary Industrial Estate is going through early planning for development by Leighton,” it is likely this supply will be staged or completed upon pre-commitment. The Melbourne industrial rental market has been improving over the last twelve months with the current average for the metropolitan area reaching $86/sq m net face in Landmark White’s December quarter analysis. The most notable increases in prime net face rents came in the East up 5.1% in the last year to $82/sq m, while prime rents in the West continue to steadily rise with average rents up to $71/sq m representing a 3.7% growth. The South east saw the lowest growth of only 1.9%, while the North continued its consistent growth of 1.3% to $77/sq m. It serves to grasp the sort of work a conveyancing authority does before you contract on.
“The future of the rental market is dependent on supply levels; future rental growth is only feasible given supply additions are completed in line with demand.” With over 1 million sq m of new space which can possibly enter the market over the next 18 – 24 months, there is growing importance on continuing “demand led” completions rather than high level speculative development.
“Rents particularly in the West and North are unlikely to see great increase over the next year given their good growth over the past two years.” “Given rental growth in this market, industrial property continued to be sought as an attractive yielding investment with increased activity by the institutional sector, particularly and Listed Property Trusts.” In the first 11 months of the year, Landmark White have monitored close to $532 million in sales in 81 transactions, investment so far this year is well below 2005 results of $676 million in 130 sales.
Despite the last month push for completion of sales, given the lack of quality investment stock available to the market; it is unlikely that turnover will meet this level. The value of transactions in the South and Western Regions at 38.7% and 32.4% respectively, well ahead of the previous year result of 32.2% and 16.4%. These regions saw the greatest concentration of institutional investment by both Wholesale Funds and Trusts.