Canberra industrial market continues seeing stable growth: HTW

Canberra industrial market continues seeing stable growth: HTW
Canberra industrial market continues seeing stable growth: HTW

The Canberra industrial market has continued to witness stabilisation and level growth, according to the latest report from valuation firm Herron Todd White.

Local commercial agents are reporting increased activity on the back of a stable residential market, improved consumer confidence and a less restrictive lending environment.

HTW focused on the ACT Government’s Four Year Indicative Industrial Land Release Program, which is based on the current level of demand for industrial land.

The program is intended to achieve a number of objectives, but in essence it is to increase the ACT Government’s responsiveness to market changes by developing an inventory of land stock, where serviced industrial sites are available for immediate release.

Land will be available across new estates in Symonston (2020-2021), Fyshwick and Majura Valley (Pialigo, 2021-2022) as well as Hume. 

The program aims to release 110,000 square metres over the next four years.

The report authors said, "owner-occupiers and private investors are active while there is also increased demand for higher valued assets as demonstrated by the February 2019 (settled) sale of 2 Paspaley Street, Hume through Burgess Rawson for $10.3 million including GST (ten year lease until 2027 plus options to 2042); reflecting rates of $2,537 per square metre of lettable area and $810 per square metre of improved land area."

"Typical analysed market yields are between six and seven per cent and lower for sub $1.5 million properties in industrial precincts."

"Queanbeyan continues to provide a desirable alternative for industrial owner-occupiers with municipal rates continuing to increase in the ACT, discouraging activity," they concluded.

Tags: 
Canberra Industrial

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