Industrial property market in Sydney sees a lift

The-industrial-property-market-in-Sydney-shows-good-signs-of-health_157_74674_0_14099413_300Any investors or buyers of industrial property in the Harbour City will be interested in industry advisory firm m3property’s latest report.

According to the Sydney Industrial Market report for winter 2014, the city will see improved sales activity and growth in other key areas of the sector in the short term. At the moment, supply of industrial property and vacancy rates are both low, which may be advantageous to holders of such property.

Supply of industrial buildings is growing, however, with a larger amount of projects having been started over the last year.

Beaumont Tiles leased a 8,140 square metre industrial space in Huntingwood, while logistics firm DB Schenker occupied a 16,000 square metre space in Eastern Creek. Growing numbers of building approvals in the preceding year are tipped to create an increase of supply in 2014 and 2015 for more firms to get in on the action, says the report.

While tenant demand is lower compared to the year ending March 13, it is still above the demand recorded in the year to March 2012, showing that there are increasing opportunities in the city’s industrial market.

Activity was strongest in the city’s Outer and Central West areas. This is not surprising given the rapidly expanding nature of Western Sydney, which is the country’s fourth largest city in its own right. The Outer and Central West similarly dominated activity during the previous year. It seems the west is the place to be for anyone considering purchasing industrial property in Sydney.

Sales activity more than doubled in the the three quarters before the December quarter of 2013. In all, close to $2 billion was sold across 81 transactions. Sales have been encouraging going into mid-June of this year, too, totalling nearly $500 million. These figures demonstrate the strong investment potential for industrial real estate in the city, and may be something which investors want to consider.

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